The gold and silver market has witnessed a significant surge following the Union Budget 2025 announcement by Finance Minister Nirmala Sitharaman. With gold prices reaching record highs and silver following the upward trend, investors and buyers are closely monitoring market trends.
In this article, we will cover the latest gold and silver rates, factors influencing these price hikes, and expert insights for potential investors.
Gold and Silver Prices After Budget 2025
On February 1, 2025, after the budget presentation, gold prices soared to ₹84,900 per 10 grams for 24-carat gold in New Delhi. This marked a sharp increase of ₹1,100 in a single day, continuing a three-day rally in gold prices.
Similarly, silver prices have also seen a strong upward movement, with a rise of ₹850 per kilogram, pushing the price to ₹95,000 per kg.
Gold Price Increase in 2025: A Look at the Numbers
Since the beginning of 2025, gold prices have risen significantly. At the start of the year, the price of gold was ₹79,390 per 10 grams. In just a month, gold has seen a 7% increase, adding ₹5,510 to its value.
This surge has greatly benefited investors who purchased gold earlier, proving once again that gold remains a strong investment option.
Gold and Silver Price Today in Major Cities (February 2, 2025)
| City | 22K Gold (₹/10g) | 24K Gold (₹/10g) | Silver (₹/kg) |
|---|---|---|---|
| New Delhi | ₹77,450 | ₹84,900 | ₹95,000 |
| Mumbai | ₹77,450 | ₹84,900 | ₹95,000 |
| Chennai | ₹77,700 | ₹84,750 | ₹95,200 |
| Kolkata | ₹77,450 | ₹84,900 | ₹95,000 |
| Bengaluru | ₹77,500 | ₹84,540 | ₹95,100 |
Note: Prices fluctuate based on global trends and local demand.
Why Are Gold and Silver Prices Rising?
Several key factors are driving the rise in gold and silver prices:
1. Impact of Budget 2025
Although the Union Budget 2025 did not include any major announcements regarding gold, investor sentiment pushed the prices higher.
2. Lower Import Duty on Gold and Silver
The government had previously reduced import duty on gold and silver from 15% to 6% in July 2024. This decision boosted demand and increased imports by 104% in August 2024, contributing to the price rise.
3. Global Economic Uncertainty
Economic instability, inflation, and geopolitical tensions have led investors to buy gold as a safe-haven asset. This global demand is one of the key reasons for rising gold prices.
4. High Inflation and Rupee Depreciation
With inflation still affecting daily expenses, many investors are turning to gold to preserve their wealth. The depreciation of the Indian Rupee against the US Dollar is also making gold imports more expensive.
5. Increasing Demand for Jewelry and Investments
India is one of the largest consumers of gold, with demand rising during weddings and festivals. Additionally, Exchange-Traded Funds (ETFs) and digital gold investments have gained popularity.
Will Gold and Silver Prices Continue to Rise?
Financial experts suggest that gold prices may continue to increase in the coming months due to global economic uncertainty. However, short-term fluctuations are expected.
For silver, industrial demand is growing, especially in electronics and renewable energy sectors, which could further push prices upward.
Is This the Right Time to Invest in Gold and Silver?
If you are planning to invest in gold or silver, consider the following:
- Long-term Investors: If you are investing for the long term, gold remains a reliable option. Buying during market corrections can offer better returns.
- Short-term Traders: For those looking for short-term gains, tracking market trends is essential. Prices may fluctuate in the short run.
- Digital Gold & ETFs: Instead of physical gold, investors can explore gold ETFs, sovereign gold bonds (SGBs), and digital gold, which offer safer and hassle-free investments.
Conclusion
The gold and silver markets are witnessing strong bullish trends in early 2025, driven by global economic uncertainty and domestic demand. With gold prices crossing ₹84,900 per 10 grams and silver reaching ₹95,000 per kg, investors are keenly observing market movements.
For those considering an investment in precious metals, expert guidance and careful planning are recommended. Keep tracking the latest gold and silver prices and make informed investment decisions.
