KKN Gurugram Desk | April 1, 2025, marks the beginning of the new financial year (FY) in India, and it has brought a significant rise in gold prices. On this auspicious day, which coincides with the third day of the Navratri festival, gold prices have surged by ₹900 compared to the previous day. This sharp increase in the price of gold has made headlines across the country. The price of 24-carat gold in Delhi has crossed the ₹92,000 mark per 10 grams.

As per the latest update from MoneyControl, the price of 24-carat gold in Delhi is now ₹92,070 for 10 grams, reflecting an increase of ₹900. Similarly, in Mumbai, the price of gold stands at ₹91,920 per 10 grams, marking a notable rise in prices as compared to the previous day.

For those looking to invest in gold, the price of 22-carat gold is also trading above ₹84,000 in most major cities across India. This increase comes at a time when the demand for gold typically rises, particularly during the festival season and wedding seasons.

Gold Price Update in Major Cities – 1st April 2025

As of today, the gold prices in key cities of India are as follows:

• Delhi:

  • 22-carat gold: ₹84,410 per 10 grams

  • 24-carat gold: ₹92,070 per 10 grams

• Mumbai:

  • 22-carat gold: ₹84,260 per 10 grams

  • 24-carat gold: ₹91,920 per 10 grams

• Chennai:

  • 22-carat gold: ₹84,260 per 10 grams

  • 24-carat gold: ₹91,920 per 10 grams

• Kolkata:

  • 22-carat gold: ₹84,260 per 10 grams

  • 24-carat gold: ₹91,920 per 10 grams

These prices are subject to fluctuations based on factors such as market demand, international gold prices, and the current economic environment.

Silver Price Update

In addition to gold, silver prices have also been a topic of interest. As of April 1, 2025, the price of silver has remained steady at ₹1,03,900 per kilogram, showing no significant change from the previous day.

Factors Contributing to the Rise in Gold Prices

The rise in gold prices can be attributed to several key factors, both domestic and international. One of the primary reasons for the surge in gold prices is the increasing economic and political uncertainty around the world. In times of instability, investors often turn to gold as a safe-haven asset to preserve their wealth.

Additionally, global events such as fluctuations in the US dollar, rising inflation concerns, and new economic policies in major economies like the United States are all contributing to the growing demand for gold. Central banks around the world, particularly those in emerging markets, are also purchasing large quantities of gold, further driving up the price.

This surge in demand for gold is also linked to the growing trend of investing in gold as a financial asset. As the stock market shows volatility and inflationary pressures increase, more investors are seeking the stability that gold provides.

How Are Gold Prices Determined?

Gold prices in India are influenced by various factors, both global and local. The international gold price, which is primarily determined by the global market, plays a significant role in determining the price of gold in India. In addition to this, fluctuations in the value of the Indian rupee against the US dollar also have a direct impact on the cost of gold in the country.

Moreover, taxes levied by the Indian government, such as the Goods and Services Tax (GST) on gold, further affect the final price that consumers have to pay. Gold is not only seen as a valuable investment asset but is also deeply integrated into India’s culture and traditions. It is considered an essential part of weddings, festivals, and other significant events in Indian society, which increases its demand.

Gold as an Investment Option in India

For many Indian households, gold is not just a precious metal but a long-standing symbol of wealth, prosperity, and cultural significance. It plays a central role in weddings and major festivals, particularly Diwali and Akshaya Tritiya. During such times, gold demand tends to peak, pushing prices higher.

In terms of investment, gold has historically been a reliable hedge against inflation and economic uncertainty. The steady increase in gold prices over the years has made it an attractive option for investors seeking to diversify their portfolios. The traditional forms of gold investment, such as buying jewelry or coins, are now being supplemented with modern investment options like gold ETFs (Exchange Traded Funds) and sovereign gold bonds, which allow investors to gain exposure to the gold market without the need to physically own gold.

Why is Gold Investment Popular in India?

Gold investment in India is deeply rooted in the culture and economic practices of the country. It has long been seen as a safe and tangible asset that can provide financial security during uncertain times. Many investors consider gold to be a ‘forever’ asset, one that retains its value over the long term and can be easily liquidated when needed.

The rise in gold prices over the last few years has also attracted investors who are looking to capitalize on its appreciating value. This trend is particularly noticeable among the urban middle class, who are increasingly viewing gold not just as a decorative item but as a potential asset for wealth creation.

As we step into the new financial year, the outlook for gold prices remains positive, especially with the ongoing economic uncertainty and political volatility globally. Gold has historically performed well during times of crisis, and with inflation and geopolitical tensions on the rise, it is expected that gold prices will continue to climb in the short term.

For investors, now may be an ideal time to consider gold as part of a diversified investment strategy. However, it is important to stay informed and keep track of the market dynamics that influence gold prices.

While gold continues to dominate as the most preferred precious metal for investment, silver also presents an opportunity for investors. With a relatively lower entry price compared to gold, silver is often seen as an accessible investment option for those looking to hedge against inflation. The current silver price of ₹1,03,900 per kilogram also represents a steady position in the market, and many investors are turning to silver as a secondary investment in the precious metals sector.

In conclusion, both gold and silver have been integral to wealth creation strategies in India for decades. As prices continue to rise, the demand for these precious metals is expected to remain strong throughout 2025, making them reliable choices for safeguarding wealth during uncertain times.