Gold & Silver Price Update: February 2025 – Market Trends, Rates & Analysis

KKN Gurugram Desk | Gold and silver prices continue to rise, making them unaffordable for the common man. Prices have surged to record highs, with no major corrections expected soon. However, a slight dip in gold prices has been recorded today.

Gold & Silver Prices See a Minor Decline Amid High Market Demand

The prices of gold and silver have skyrocketed in recent months. Especially after Donald Trump’s return to power in the US, gold prices have been on an upward trajectory. Investors are shifting towards gold as a safe-haven asset, fearing potential economic instability due to Trump’s trade tariff policies.

Higher gold demand leads to increased prices, and silver prices are also witnessing a similar trend.

Current Gold & Silver Prices in Major Indian Cities

On February 22, 2025, gold prices saw a minor decline. According to the latest reports, in Delhi, the price of 24-carat gold per 10 grams is ₹87,563, which was ₹87,833 on February 21. This indicates a drop of ₹270 per 10 grams. On February 16, gold was trading at ₹86,243 per 10 grams, showing a consistent upward trend over the past few days.

For silver, the price in Delhi stands at ₹1,03,400 per kg, down from ₹1,03,500 per kg yesterday.

Gold & Silver Prices in Other Cities

Why Do Gold Prices Vary Across Cities?

Gold prices differ from one city to another due to multiple factors, primarily local taxes imposed by state governments. These tax rates vary across states, leading to differences in retail gold prices.

Apart from taxation, other reasons affecting price variation include:

• Import duties imposed by the Indian government.
• Transportation and logistics costs associated with gold distribution.
• Local demand-supply fluctuations impacting pricing in specific regions.

Factors Influencing Gold & Silver Prices in India

1. International Market Trends

Gold prices are not solely driven by local demand and supply but are also influenced by global economic events. Major international trading hubs like London OTC Spot Market and COMEX Gold Futures Market play a crucial role in determining gold prices.

2. US Dollar & Inflation Impact

Gold is priced in US dollars in the international market. A weaker rupee against the dollar makes gold expensive in India. Additionally, inflation concerns lead to higher gold investments, as gold is considered a hedge against inflation.

3. Central Bank Gold Reserves

The Reserve Bank of India (RBI) and other central banks globally hold gold reserves. If these banks increase their gold purchases, prices tend to rise due to higher demand.

4. Geopolitical Uncertainty

Political instability, economic slowdowns, and trade conflicts often push investors towards gold. With Donald Trump’s economic policies creating global uncertainty, gold demand has surged, leading to record-high prices.

5. Interest Rates & Stock Market Trends

When interest rates are low, investors prefer gold over fixed-income assets. Similarly, volatile stock markets often push investors toward gold as a safe investment.

Who Decides Gold Prices?

The London Bullion Market Association (LBMA) is responsible for setting international gold prices in US dollars. This serves as a benchmark for banks and bullion traders worldwide.

In India, the Indian Bullion Jewellers Association (IBJA) calculates domestic gold prices by adding import duties and local taxes to global rates. This determines the final price at which retailers sell gold to consumers.

Is This the Right Time to Invest in Gold & Silver?

Given the rising trend in gold prices, investors are questioning whether this is the right time to buy gold. Market experts suggest that:

• Long-term investors can still invest in gold, as it remains a stable asset during economic uncertainty.
• Short-term traders should monitor global trends and market fluctuations before making investment decisions.
• Silver investors can expect volatility but a potential upward trend in the near future.

Gold and silver prices continue to remain at record highs, with minor daily fluctuations. Donald Trump’s economic policies, inflation concerns, and global demand for safe-haven assets are expected to keep prices elevated.

Investors should stay updated with international market trends, currency exchange rates, and central bank policies before making any investment decisions.