As of April 22, 2025, gold prices in India have soared beyond ₹1 lakh per 10 grams, marking a historic milestone. This surge reflects a 100% increase over the past three years, driven by a confluence of global and domestic factors .The Financial Express
Global Economic Uncertainty Fuels Demand
Recent geopolitical tensions, including U.S. trade restrictions on China and conflicts in the Middle East, have heightened investor anxiety, prompting a shift towards gold as a safe-haven asset . Additionally, the weakening of the U.S. dollar has made gold more attractive to investors worldwide, further propelling its price .The Guardian
Domestic Factors Amplify the Rally
In India, strong consumer demand, especially during the wedding season, has intensified the upward pressure on gold prices. The Reserve Bank of India’s continued gold purchases to bolster its reserves have also contributed to the price escalation . Moreover, the depreciation of the Indian rupee against the U.S. dollar has made gold imports more expensive, adding to the domestic price surge .Reuters
Investment Patterns Shift
With equities underperforming, Indian investors are increasingly turning to gold-backed exchange-traded funds (ETFs), which have seen record inflows in recent months . Conversely, high prices have led to a decline in traditional jewellery purchases, with many consumers opting to sell existing gold assets instead .Financial TimesReuters
Outlook
Analysts suggest that while gold remains a robust investment, potential buyers should exercise caution and consider purchasing during price dips rather than at peak levels . The gold market is expected to remain volatile, influenced by ongoing global economic developments and domestic demand dynamics.
