KKN Gurugram Desk | The Indian bullion market, particularly in Varanasi, witnessed a significant upswing in gold and silver prices on Sunday, April 14, 2025. The hike has come at a crucial time — just ahead of the peak wedding season — impacting buyers and investors alike.
According to Santosh Kumar Agrawal, President of the Varanasi Bullion Association, the prices of both gold and silver soared to new highs, led by increased demand, international market movements, and speculation in precious metals.
As per the latest updates, 24-carat gold in Varanasi rose by ₹280 per 10 grams on Sunday, reaching a new record of ₹95,820, up from ₹95,540 on April 12.
This marks the highest recorded price for gold in the region so far in 2025.
Similarly, 22-carat gold, which is commonly used in jewelry, also saw a steep rise. It went up by ₹250, now priced at ₹87,850 per 10 grams, up from ₹87,600 on the previous trading day (April 13).
For those opting for 18-carat gold, mostly used in customized or lightweight ornaments, the price increased by ₹200 to reach ₹71,880 per 10 grams.
Alongside gold, silver prices witnessed a sharp rally. The price of silver jumped by a staggering ₹3,000 per kilogram, bringing it to a symbolic and psychological barrier of ₹1,00,000 per kilogram — a first in Varanasi this year.
On April 13, silver was trading at ₹97,000/kg, which means Sunday’s spike represents one of the steepest single-day gains in recent months. The spike is largely attributed to global supply constraints, industrial demand, and increased local consumption.
Several economic and market factors are contributing to this unprecedented surge in gold and silver prices across India:
With growing uncertainty in international markets due to geopolitical tensions, many investors are turning to safe-haven assets like gold and silver. Central banks globally, including the RBI, have also been increasing gold reserves, driving demand further.
A relatively weak Indian rupee against the US dollar has made gold imports more expensive. Since India imports most of its gold, a weaker currency translates directly into higher domestic prices.
India is entering one of its busiest wedding seasons, a period when gold jewelry purchases peak. Cultural traditions and gifting customs have led to a demand-driven price rally in the gold market.
As prices continue to climb, many traders are investing in gold and silver expecting further gains, creating a self-sustaining cycle of demand and price hikes.
While prices soar, experts like Santosh Kumar Agrawal urge buyers to be cautious and vigilant.
He advises that:
Always check for the BIS Hallmark — the official certification of purity.
Prefer 24-carat gold for investment and 22-carat gold for jewelry.
Be wary of counterfeit products and unauthorized sellers, especially during high-demand periods.
“Buyers should not get carried away by price fluctuations and must ensure the authenticity and purity of gold while purchasing,” said Agrawal.
| Purity Level | Price (Per 10 Grams) | Change from Previous Day |
|---|---|---|
| 24-Carat | ₹95,820 | +₹280 |
| 22-Carat | ₹87,850 | +₹250 |
| 18-Carat | ₹71,880 | +₹200 |
| Metal | Price (Per Kg) | Change from Previous Day |
|---|---|---|
| Silver | ₹1,00,000 | +₹3,000 |
The ongoing spike is a setback for those planning gold purchases for weddings or festivals. Many may either postpone purchases or shift towards lightweight jewelry and gold-plated alternatives.
Jewelry shops are experiencing a paradoxical trend — while footfall is increasing, the actual conversion rates are down. Buyers are hesitant, seeking smaller pieces or making advance bookings in anticipation of further hikes.
While the record prices may seem unattractive, financial advisors suggest that gold continues to be a strong long-term investment, especially in times of inflation or stock market instability.
However, they recommend:
Avoiding bulk purchases at peak prices.
Considering Systematic Investment Plans (SIPs) in gold ETFs or sovereign gold bonds.
Monitoring international gold trends and currency movements closely.
Industry experts, including Agrawal, suggest that while current prices are high, some corrections may occur post the wedding season or if global tensions ease. However, no significant drop is expected in the short term.
“The volatility will remain. But as wedding season passes and imports stabilize, we may see some decline in May or June,” said Agrawal.
Track Daily Prices: Stay updated via reliable news sources or bullion association portals.
Buy in Small Quantities: Spread purchases to average out cost.
Opt for Hallmarked Jewelry: Ensures purity and resale value.
Avoid Impulse Buying: High emotional spending during weddings can lead to poor financial decisions.
The gold and silver market in Varanasi — and across India — is witnessing unprecedented highs fueled by global trends, domestic demand, and seasonal buying pressure.
While this poses challenges for average consumers, it also reinforces gold’s enduring value as a secure investment and cultural asset.
This post was published on April 14, 2025 12:08
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