Mumbai: As of March 10, 2025, gold prices in India have experienced a significant increase, with 24K gold priced at ₹87,873 per 10 grams and 22K gold at ₹80,563 per 10 grams. This surge reflects various global economic factors influencing the precious metal’s value.
Also read: Gold and Silver Prices in India on March 9, 2025: Latest Market Trends
Current Gold Rates in Major Indian Cities
Gold prices in India fluctuate across cities due to factors like local demand, state taxes, and transportation costs. As of March 10, 2025, the price of 24K gold in Delhi stands at ₹87,873 per 10 grams, while 22K gold is priced at ₹80,563. In Kolkata, 24K gold is slightly higher at ₹87,889 per 10 grams, with 22K gold at ₹80,579. Mumbai, known for its strong gold market, sees 24K gold at ₹87,866 and 22K gold at ₹80,556. Meanwhile, Chennai, a major hub for gold jewelry purchases, reports 24K gold at ₹87,721 and 22K gold at ₹80,411. These variations reflect regional market dynamics, including supply constraints and consumer preferences.
Factors Influencing Gold Prices
Several factors have contributed to the recent increase in gold prices:
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Monetary Easing: In 2024, central banks worldwide shifted from tightening to easing monetary policies in response to moderating inflation and evolving economic conditions. The Federal Open Market Committee reduced interest rates thrice in 2024, with projections indicating two more rate cuts in 2025. The European Central Bank and the Bank of England have also pivoted towards easing, aiming to support economic growth amid declining inflation.
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Political Uncertainty: The re-election of Donald J. Trump as the U.S. President has introduced significant shifts in policy and economic strategies, potentially influencing global markets and geopolitics. His import tariff threats against China, Canada, Mexico, and BRICS nations have rekindled fears of global trade wars, creating economic uncertainty.
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Inflation Concerns: While inflation has been normalizing, progress may slow, and specifics will vary by country. In the U.S., inflation may rebound at the end of 2025 due to higher prices and labor costs resulting from new tariff and immigration policies, before resuming its downward trend in 2026 as growth slows.
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Investment Demand: Central banks have been significant players in the gold market, increasing global gold holdings by around 745 tonnes in the first ten months of 2024. The Reserve Bank of India bought 77 tonnes of gold, a five-fold increase from the same period in 2023, making it one of the largest buyers among central banks in 2024.
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Geopolitical Uncertainty: Ongoing geopolitical risks, such as the war in Ukraine and tensions in the Middle East, continue to drive investors towards gold as a safe-haven asset. Emerging risks like European sovereign debt concerns and instability in regions like South Korea and Syria further bolster gold’s appeal.
Impact on Gold Demand and Loans
Elevated gold prices have dampened India’s gold demand, with high domestic prices hovering around ₹85,860 per 10 grams, close to last month’s record high. Indian dealers have offered discounts of $10 to $21 an ounce over official prices, including import and sales levies. Supplies have been tight with limited bank imports.
The surge in gold prices has also led to a massive increase in gold-backed loans, growing by 68% in the first nine months of the fiscal year compared to 12.7% in the same period last year. This growth is driven by the ease of acquiring loans against gold and higher loan amounts available due to increased gold prices. However, there has been an increase in defaults, prompting the Reserve Bank of India to call for better valuation and monitoring procedures.
Market Outlook
The current rise in gold prices presents both opportunities and challenges for investors:
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Long-Term Investment: Gold continues to be a reliable long-term investment, offering a hedge against inflation and currency fluctuations.
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Market Volatility: Investors should remain cautious of short-term market volatility and consider diversifying their portfolios to mitigate risks.
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Timing Purchases: Given the current high prices, potential investors might consider waiting for a price correction before making significant purchases.
Conclusion
As of today, gold prices in India have risen, with 24K gold at ₹87,873 per 10 grams and 22K gold at ₹80,563 per 10 grams. This increase underscores the impact of global economic factors on the domestic gold market. Investors are advised to stay informed and consider both global and local economic indicators when making investment decisions in the gold market.
