CHENNAI: Gold Prices in India, as of the weekend, have seen a notable increase. On Saturday (May 24) gold recorded an average price of ₹9,769 per gram (24 Karat- 999 purity), and ₹8,956 per gram (22 Karat -91.6% purity).
These rates reflect a steady rise in gold prices over the past few weeks, influenced by various global and domestic factors.
Global Market Influences
Internationally, gold prices have been experiencing upward momentum. Analysts predict that gold could reach up to $4,000 per ounce within the next year, driven by global economic uncertainties and inflation concerns .
In India, this global trend is mirrored, with prices steadily climbing. For instance, on May 8, 2025, 24 Karat gold was priced at ₹9,960 per gram, indicating a consistent upward trajectory .
Cultural Significance and Demand
Gold holds immense cultural and economic significance in India. It is considered a symbol of prosperity and security, especially during weddings, festivals, and other significant life events. This cultural affinity drives consistent demand, particularly during peak seasons like Akshaya Tritiya and wedding months.
However, the recent price hikes have led to cautious buying behavior among consumers. While gold remains a preferred investment avenue, the increased costs are prompting buyers to reconsider their purchases .
Market Trends and Predictions
Despite the recent price increases, some experts anticipate a potential correction. Gold prices have fallen approximately 7% from their peak in April 2025, and there's speculation that they might drop to ₹88,000 per 10 grams . Investors are advised to monitor market trends closely and consider diversifying their portfolios to mitigate risks.