Gold prices have surged sharply in recent times. Since 2022, prices have nearly doubled. In just the past year, gold prices have gone up by ₹25,000 per 10 grams.
In April this year, prices briefly touched ₹1 lakh per 10 grams — a historic high.
Silver, too, has followed a similar trend. In recent years, silver prices ranged between ₹60,000 to ₹70,000 per kg. But in March 2025, prices hit ₹1 lakh per kg, marking a significant rally.
Despite high prices, demand for gold remains steady, especially in physical forms like jewellery, coins, and bars. Around 60–65% of purchases are still made in physical formats. However, digital investment options like gold ETFs, mutual funds, and digital gold are also gaining popularity.
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The rise in gold prices can be attributed to global concerns such as inflation and trade tensions. In 2025 so far, gold prices have already risen 27%. In 2024, the gain was 28%, and in 2023, it was 15%.
A key driver behind this rally is the consistent buying by global central banks. In 2022, central banks bought a record 1,082 tonnes of gold. While the purchases in January and February 2025 stood at 44 tonnes, total buying for the year is expected to be between 800 and 1,000 tonnes — still a strong number.
Experts believe this momentum will continue. Bank of America forecasts an average gold price of $3,350 per ounce for 2025. Deutsche Bank and ANZ expect prices to touch $3,600 to $3,700 per ounce by year-end. JP Morgan has gone even further, saying prices could cross $4,000 per ounce by 2029.
While short-term corrections may occur, the long-term outlook for gold remains firmly bullish.
Despite the sharp rise in gold prices, consumer interest in the precious metal remains strong, according to the Gem and Jewellery Export Promotion Council (GJEPC). Khushboo Ranawat, Chairperson of the Council’s Western Region, noted that while the price surge has created some financial strain for buyers, retailers are stepping up efforts to attract customers through targeted strategies and promotions.
She added there is growing demand for lightweight and modern jewellery collections, particularly among younger buyers. Gold continues to be seen as a reliable long-term investment, especially as global economic uncertainties drive central banks and countries to maintain substantial gold reserves.
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