Gold prices reached unprecedented levels on February 20, 2025, sparking increased consumer interest and presenting new investment opportunities. The price of 24-carat gold surged to ₹88,900 per 10 grams, marking a significant rise amid growing demand. Silver also saw substantial gains, surpassing ₹1,00,000 per kilogram, further fueling interest among both investors and consumers.
The global impact on the Indian market was highlighted by the U.S. spot price of gold, which recently hit $2,947. The price surge is largely attributed to mixed signals from the U.S. Federal Reserve, particularly following the release of the FOMC minutes that revealed rising inflation concerns linked to tariff policies under former President Trump. According to Ishi Datwani from Anmol Jewelers, the surge in prices has led to speculation that gold could soon hit ₹1 lakh per 10 grams, a sentiment that reflects optimism within the jewelry retail sector, especially during the wedding season when demand for gold jewelry traditionally peaks.
The increased demand is also being driven by gold’s growing appeal as a safe-haven investment, particularly in the face of geopolitical tensions and global economic uncertainties. Local trader Pankaj Soni noted, “The increase is due to interest rate cuts and global geopolitical tensions, which are making gold more appealing to buyers. We see steady demand as people invest heavily during this period.”
Market analysts predict that gold may continue its upward trajectory, with experts like Jatin Trivedi from LKP Securities forecasting a potential rise to ₹90,000 per 10 grams. This optimism is supported by trends in major Indian cities, where purchases of bridal and lightweight gold jewelry have surged in response to rising prices.
On the street, fluctuations in gold prices have been widely felt. Recent reports indicate that 24-carat gold prices peaked at ₹86,733 before slightly dropping to ₹86,520 on February 20. Silver prices also saw a sharp increase, rising from ₹97,566 to ₹97,789 per kilogram during the same period.
Experts emphasize the importance of staying informed about market fluctuations, as changes in global economic conditions and domestic factors in India can significantly impact consumer buying decisions. Soumil Gandhi from HDFC Securities explained, “Gold’s appeal as a safe investment has grown due to Trump’s tariff policies and the resulting economic uncertainties. These circumstances are altering buying patterns, and if market sentiment remains positive, we could see prices surge even higher.”
As geopolitical tensions continue to affect investor confidence, gold’s value remains sensitive to shifts in both international supply and demand, as well as policy decisions. Industry professionals have long acknowledged the delicate balance between these factors, and market watchers are closely monitoring how they will impact pricing trends.
For those considering gold investments, experts advise staying informed about both global and domestic developments. Seasonal trends, particularly during wedding season, often have a significant impact on gold prices, and purchasing habits tend to fluctuate accordingly.
Looking ahead, the gold and silver market is expected to maintain its bullish trend, driven by both domestic and international factors. While price hikes may lead to heightened consumer caution, they also present opportunities for savvy investors entering the market at key moments. As gold proves resilient amid uncertainty, this trend may accelerate in the coming months.
With the wedding season approaching and expectations high, demand for gold and silver is likely to remain strong. Investors and consumers alike should stay attuned to ongoing pricing trends and consider certified gold, marked by proper hallmarks, to ensure quality and authenticity. As 2025 unfolds, the precious metals market is set to experience dynamic shifts influenced by both local and global economic factors.
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