KKN Gurugram Desk | The price of gold and silver in Varanasi, one of the most significant trading hubs for precious metals in Uttar Pradesh, has experienced significant fluctuations in recent weeks. After a sharp rise to unprecedented levels, the price of gold has now seen a considerable dip of more than ₹3000, reaching a period of stability. This price movement is critical for both investors and buyers, especially with upcoming occasions like Akshay Tritiya, a festival known for its tradition of gold purchasing. As of April 26, 2025, the gold and silver markets in Varanasi are showing signs of consolidation, offering both challenges and opportunities for those looking to buy or invest in these precious metals.
Gold Prices in Varanasi: Current Trends and Market Stability
As of April 26, 2025, the prices of gold in Varanasi have remained relatively stable. The market showed no major fluctuations compared to previous days, reflecting a certain level of equilibrium after a volatile period. The price of 24-carat gold was ₹98,340 per 10 grams, consistent with the price recorded on April 25, 2025. This stability follows a period of sharp price increases, which caused many buyers and investors to hesitate before making any new purchases.
The price of 22-carat gold, another popular choice for jewelry and investment, was ₹90,200 per 10 grams, holding steady from the previous day. This consistency has provided some relief to consumers who had been anxious about the rapid price hikes earlier in the year.
For those looking for lower karat gold, 18-carat gold is available at ₹73,800 per 10 grams, maintaining its value from previous days. This variety, although not as pure as 24-carat gold, remains a popular choice due to its affordability compared to higher karat gold.
Understanding Gold Purity and Hallmarking
When purchasing gold, it is crucial to ensure the authenticity and purity of the metal. 24-carat gold, being the purest form of gold available, is the most sought after for investment purposes, although it is relatively softer and more prone to damage than lower karat gold. For consumers, it is always advisable to check for the hallmark certification when buying gold, as it guarantees the purity of the metal. Hallmarked gold assures buyers that the metal has been tested and certified by the Bureau of Indian Standards (BIS), ensuring its quality and authenticity. It is recommended that buyers avoid purchasing non-hallmarked gold to avoid counterfeit products.
Silver Prices in Varanasi: Stable with Limited Movement
Silver, another precious metal with high demand in the market, has shown a similar pattern to gold in Varanasi. As of April 26, 2025, the price of silver per kilogram remained unchanged at ₹1,00,800, the same price observed on April 25, 2025. The price stability in silver can be attributed to market dynamics, including the tax regime, import duties, and global demand. Silver has always been considered a valuable asset, though it is generally more affordable than gold, which often makes it more accessible to the general public.
While silver prices remain steady at the moment, they are subject to fluctuations due to global economic factors, industrial demand, and changes in gold prices, as both metals often move in tandem in the international market.
Factors Affecting Gold and Silver Prices
The prices of gold and silver are influenced by several factors, both domestic and international. These include:
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Global Economic Conditions: Economic uncertainty, inflation fears, and changes in interest rates often drive people to invest in precious metals like gold and silver as safe-haven assets.
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Local Taxation and Import Duties: In India, taxes and import duties play a significant role in the price of gold and silver. Changes in the Goods and Services Tax (GST) or other import levies can cause prices to fluctuate.
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Festival Seasons: In India, festivals like Diwali, Akshay Tritiya, and Dussehra see a spike in gold purchases. The demand during these periods can lead to price increases as jewelers and traders stock up for anticipated sales.
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Geopolitical Events: Political instability, particularly in major gold-producing regions, can also cause fluctuations in global gold prices, affecting local markets in cities like Varanasi.
Akshay Tritiya and Its Impact on Gold and Silver Purchases
Akshay Tritiya, one of the most significant festivals for gold buying in India, is just around the corner. It is considered an auspicious day for purchasing gold and starting new ventures. As the festival approaches, many people in Varanasi are expected to buy gold in large quantities, which could lead to an increase in demand and potentially drive up prices.
However, with the current market stability, experts believe that while gold prices might not see drastic increases, there could still be slight fluctuations due to the surge in demand during this festive season. The overall trend in the gold market will depend on how much demand picks up and whether global market conditions cause any immediate changes in prices.
Vijay Tiwari’s Analysis: Market Outlook
Vijay Tiwari, the Patron of the Varanasi Sarrafa Association, offered insights into the future trends of the gold market. He mentioned that gold prices, after soaring to new highs, have now settled down with a significant drop of more than ₹3,000. He also indicated that the market remains in a state of equilibrium, suggesting that the fluctuation of gold prices would likely continue as global and local conditions evolve.
Tiwari emphasized that although the current market may be stable, there is always the possibility of sudden price movements due to external factors such as geopolitical tensions, changes in global demand, and tax adjustments. For those looking to invest or purchase gold, it is important to keep an eye on these developments to make informed decisions.
Gold and Silver Investment Strategy: Should You Buy Now?
For those interested in investing in gold or silver, the current market presents both opportunities and challenges. On one hand, the prices are stable, offering a good opportunity for those who have been waiting for prices to stabilize before making a purchase. On the other hand, with potential fluctuations on the horizon due to the upcoming festive season, buyers may want to be cautious and keep an eye on market trends.
For long-term investors, buying gold at a stable price, like the current rate in Varanasi, could be a sound strategy. Gold is often considered a safe investment, especially in times of economic uncertainty. Similarly, silver, though not as widely viewed as a long-term investment like gold, offers a more affordable option for those looking to diversify their portfolio.
The gold and silver markets in Varanasi, like the rest of the world, are influenced by a combination of local demand, global economic factors, and seasonal variations. While prices have stabilized as of April 26, 2025, there is always room for fluctuations in these volatile markets, particularly with festivals like Akshay Tritiya around the corner. Both gold and silver remain valuable assets for investment and ceremonial purposes, and consumers should carefully consider the best times to buy based on market trends and expert opinions.
As the market continues to evolve, it’s essential for buyers to stay informed and consult with trusted jewelers or financial advisors before making any significant purchases, especially if they are looking to purchase high-value items like 24-carat gold.
