KKN Gurugram Desk | On Thursday, 27 February 2025, gold prices in India witnessed a significant decline. The price of 24-carat gold fell by ₹400 per 10 grams, while 22-carat gold dropped by ₹380 per 10 grams.
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Currently, in major Indian cities:
- 24-carat gold is priced around ₹87,800 per 10 grams
- 22-carat gold is trading at approximately ₹80,400 per 10 grams
- Silver prices have also fallen, with one kilogram of silver now below ₹98,000
Gold Market Sees Price Correction
After a continuous rise in gold rates, today’s market saw a price correction. Several factors influence gold prices in India, including:
- Strengthening of the US Dollar Index
- US Federal Reserve’s stance on interest rates
- Domestic demand during festivals and wedding season
- Investor profit-booking trends
If the US dollar gains strength or the Federal Reserve adopts a stricter monetary policy, gold prices may decline further. Similarly, if domestic demand reduces or investors sell their gold holdings for profit, a further dip in prices is possible.
Gold Prices in Major Indian Cities
Gold prices fluctuate across different cities due to local demand, taxation policies, and transportation costs. Here are the gold prices in four major Indian cities as of 27 February 2025:
| City | 22-Carat Gold Price (₹/10g) | 24-Carat Gold Price (₹/10g) |
|---|---|---|
| Delhi | ₹80,640 | ₹87,960 |
| Mumbai | ₹80,490 | ₹87,810 |
| Chennai | ₹80,490 | ₹87,810 |
| Kolkata | ₹80,490 | ₹87,810 |
Silver Prices See a Major Drop
Silver prices also saw a sharp decline of ₹2,000 per kg. As of 27 February 2025, silver is trading at ₹97,900 per kg.
Factors Affecting Gold Prices in India
Gold prices in India are influenced by several factors, including:
1. International Gold Rates
Gold is globally traded, and its price is affected by international market trends. Any fluctuation in global gold rates directly impacts Indian gold prices.
2. US Dollar vs. Indian Rupee Exchange Rate
Gold is traded in US dollars in international markets. If the US dollar strengthens against the Indian rupee, gold prices in India increase. Conversely, a weaker dollar leads to lower gold prices.
3. Import Duties and Government Taxes
India is one of the largest importers of gold, and its price is affected by import duties, GST, and other government taxes. Any changes in these taxes directly impact gold rates.
4. Demand During Wedding and Festival Seasons
Gold plays a significant role in Indian traditions, especially during weddings and festivals. Increased demand during festive seasons like Diwali, Akshaya Tritiya, and wedding months pushes gold prices up.
5. Interest Rate Decisions by Central Banks
When central banks, such as the US Federal Reserve and Reserve Bank of India (RBI), increase interest rates, gold prices tend to fall. This is because investors shift towards interest-bearing assets instead of gold.
Should You Buy Gold Now?
With gold prices dropping, many investors and buyers are wondering whether this is the right time to invest. Here’s what you should consider:
Why You Should Buy Gold Now?
- Gold prices are down, making it a good time to invest before rates rise again.
- The wedding season is ongoing, and prices may increase soon due to high demand.
- Gold is a safe-haven asset, protecting against inflation and economic uncertainty.
Why You Should Wait?
- Prices may drop further if the US dollar strengthens or global economic conditions change.
- If you are buying for investment, waiting for a further correction might be beneficial.
How to Check Gold Prices Online?
To stay updated with real-time gold prices, you can check:
- MCX (Multi Commodity Exchange of India) Live Rates
- Jewelry retailers’ official websites
- Bank websites and investment platforms
Gold Price Prediction: What’s Next?
Market experts predict that gold prices may see more fluctuations in the coming weeks. If the US Federal Reserve signals interest rate hikes, gold prices could decline further. However, any economic instability or geopolitical tensions might push gold prices higher.
Expert Recommendations
- If you are buying gold for personal use or weddings, this is a good time to buy.
- If you are an investor, it is advisable to monitor global trends before making a big purchase.
Gold rates in India have declined, providing a potential buying opportunity for investors and jewelry buyers. However, market conditions remain volatile, and prices may fluctuate further based on global trends, central bank policies, and domestic demand.
Before making any gold investment or purchase, it is important to track market trends, compare city-wise prices, and stay updated with the latest financial news. Stay tuned for daily gold price updates and expert insights!
