Gold prices in India experienced significant fluctuations on May 9, 2025, reflecting both domestic and international economic factors. The price of 24-carat gold surged to ₹99,730 per 10 grams in the national capital, marking an increase of ₹480 from the previous close of ₹99,250 per 10 grams. This rise is attributed to escalating geopolitical tensions between India and Pakistan, which have driven investors toward safe haven assets like gold.
In addition to the national capital, gold prices varied across major cities in India. For instance, in Mumbai, 24-carat gold was priced at ₹99,835 per 10 grams, while in Chennai, it was slightly lower at ₹98,350 per 10 grams. These variations highlight the impact of local demand and supply dynamics as well as the influence of international market trends.
The All India Sarafa Association reported that gold of 99.5 percent purity also saw a price increase, climbing to ₹99,280 per 10 grams. This reflects a broader trend where gold has become a preferred investment during times of uncertainty, as it is traditionally viewed as a hedge against inflation and economic instability.
Chintan Mehta, CEO of Abans Financial Services, noted that while easing trade tensions have provided some relief to the market, the ongoing geopolitical risks, including the India-Pakistan situation, the Russia-Ukraine conflict, and Israel's actions in Gaza, continue to support gold prices. He remarked, "Gold prices are holding steady as easing trade tensions take some pressure off the market. However, geopolitical risks may keep underlying support for gold intact."
In the international markets, spot gold rose by $22.37, reaching $3,328.09 per ounce, while spot silver increased by 0.23 percent to $32.54 per ounce. These international price movements often influence domestic gold rates, as Indian markets react to global trends.
Despite the recent rally, gold prices have seen volatility in recent weeks, with fluctuations driven by various factors including currency valuation and market sentiment. For instance, on May 8, 2025, the price of 24-carat gold had dipped to ₹98,350 per 10 grams, reflecting a drop of ₹1,250 from the previous day's rate. This decrease was attributed to broader market volatility and investor caution amid ongoing global economic developments.
In Chennai, the price of 24-carat gold today stands at ₹98,350 per 10 grams, down from ₹99,600 yesterday, while 22-carat gold is priced at ₹9,015 per gram. Similarly, in Hyderabad, the rates mirror those in Chennai, with 24-carat gold priced at ₹98,350 and 22-carat gold at ₹9,015.
As for silver, prices have remained stable, with the current rate at ₹111 per gram and ₹1,11,000 per kilogram in Chennai and Hyderabad. This stability in silver prices contrasts with the fluctuations seen in gold, illustrating the differing market dynamics for these precious metals.
Market analysts have indicated that while gold remains a popular investment, particularly during times of geopolitical tension, the recent price movements suggest a complex interplay of local demand, international market trends, and economic indicators. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, pointed out that investors are closely monitoring the Federal Reserve's communications, as any changes in interest rates could significantly impact gold prices moving forward.
Looking ahead, analysts predict that gold prices may continue to fluctuate as investors react to ongoing geopolitical developments and economic indicators. The current market sentiment suggests that gold will remain a key asset for investors seeking stability amid uncertainty.
In summary, the price of gold in India on May 9, 2025, reflects a complex interplay of domestic and international factors, with prices rising significantly amid geopolitical tensions. As investors navigate this volatile landscape, gold continues to be viewed as a valuable hedge against uncertainty and inflation, solidifying its status as a crucial asset in investment portfolios.
