Gold prices hit an all-time high on January 30, 2025, with the 24K gold crossing the ₹83,000 mark in Delhi, driven by strong retail demand and a weaker US dollar in global markets. In addition to robust demand ahead of the upcoming wedding season in India, the US Federal Reserve’s decision to hold rates steady helped gold extend its gains.
Gold Surges as Retail Demand and Dollar Weakness Collide
Gold prices soared on Thursday morning, propelled by a combination of factors. In Delhi, 24K gold was priced at ₹83,010 per 10 grams, marking a significant milestone, while the 22K gold reached ₹76,110. In Mumbai, the 24K gold inched up by ₹10, to ₹82,860 per 10 grams, as retail demand surged with wedding season preparations in full swing.
The rally in gold prices can be attributed to the US Federal Reserve’s decision to keep interest rates unchanged the previous day. By holding off on rate cuts, the Fed caused the US dollar and bond yields to weaken, making gold more attractive to investors globally. With the dollar’s value dropping, gold, which is often seen as a hedge against currency fluctuations, gained appeal.
In global markets, spot gold rose slightly by 0.02%, touching $2,760 an ounce early on Thursday. This global uptick further contributed to the record-breaking prices seen in domestic markets.
Price Breakdown: Major Cities Show Similar Trends
Gold prices across major Indian cities mirrored the trend seen in Delhi and Mumbai, reflecting the broad market enthusiasm for the yellow metal. In cities like Chennai, Kolkata, and others, the 24K gold prices stood at ₹82,860 per 10 grams, while 22K gold was priced at ₹75,960.
Here’s a breakdown of gold prices in major Indian cities:
| City | 22K Gold (per 10 gm) | 24K Gold (per 10 gm) |
|---|---|---|
| Delhi | ₹76,110 | ₹83,010 |
| Mumbai | ₹75,960 | ₹82,860 |
| Chennai | ₹75,960 | ₹82,860 |
| Kolkata | ₹75,960 | ₹82,860 |
Silver Prices Ease Amid Weak Demand
While gold prices have reached new highs, silver prices on January 30 saw a slight dip. Silver eased by ₹100 to ₹96,400 per kg in major cities. The decrease is largely attributed to weak demand from industrial users and coin manufacturers, both of which have contributed to a slowdown in the white metal’s consumption. Despite this minor setback, silver’s performance remains relatively stable when compared to the dramatic surge in gold prices.
Outlook: Will Gold Continue to Shine?
Looking ahead, the outlook for gold remains positive, as geopolitical tensions, economic uncertainties, and the upcoming wedding season are expected to keep demand strong. The Fed’s cautious approach to interest rates and the continued weakening of the US dollar further suggest that gold could continue its ascent. For investors, this creates an interesting opportunity, as the precious metal’s strong performance could serve as a safe haven against potential market volatility in the months to come.
