Gold prices rising–and so are the eyebrows!
In March 2025, gold hit an all-time high of over ₹6,900 per gram, and suddenly, it’s the hottest topic at family gatherings, WhatsApp groups, and even chai stalls.
Why is gold price rising in India? Will it go up even more?–these are the questions everyone’s asking.
For some, it’s a jackpot moment, while for others, it’s a budget nightmare; especially those planning weddings or thinking about their next investment move. But what’s really behind this surge? And more importantly, should you buy, hold, or wait?
In this blog, we’ll break it all down—the global and local factors pushing prices up, past trends, and whether gold is still the safe haven it’s known to be in 2025.
Historical Gold Price Trends in India
To make sense of today’s skyrocketing prices, let’s rewind a bit. Gold has seen multiple highs over the years—whether it was the 2008 global financial crisis, the 2011 Eurozone turmoil, the 2020 pandemic, or the geopolitical tensions of 2023. Every time uncertainty hit, gold prices shot up.
Between 2015 and 2025, gold in India jumped from around ₹2,500 per gram to nearly ₹6,900 per gram—a massive 176% rise.
Gold Prices in India (2005–2025)
Here’s a tabular representation of gold price changes in India in the last 20 years:
| Year | Gold Price (INR per 10g) |
| 2005 | ₹7,000 |
| 2006 | ₹8,800 |
| 2007 | ₹9,400 |
| 2008 | ₹12,500 |
| 2009 | ₹14,500 |
| 2010 | ₹18,500 |
| 2011 | ₹26,000 |
| 2012 | ₹31,000 |
| 2013 | ₹29,600 |
| 2014 | ₹28,000 |
| 2015 | ₹26,300 |
| 2016 | ₹28,600 |
| 2017 | ₹29,600 |
| 2018 | ₹31,400 |
| 2019 | ₹39,300 |
| 2020 | ₹51,000 |
| 2021 | ₹48,500 |
| 2022 | ₹52,500 |
| 2023 | ₹59,400 |
| 2024 | ₹65,500 |
| 2025 | ₹69,000 (estimated) |
Gold vs. Inflation: A Solid Performer
Even when adjusted for inflation, gold has outshined fixed deposits and has even kept pace with long-term equity returns—but with way less volatility. No wonder it remains a staple in Indian investment portfolios.
The Rupee Effect
The falling rupee has also pushed gold prices higher. Since India imports most of its gold, a weaker INR means higher costs. The data is clear—charts tracking gold prices rising show a strong link between currency depreciation and global economic risks.
Is Gold a Good Option for Investing?
Well, the answer depends not just on the historical charts, but also on your investment desires and approaches. However, for a more detailed understanding, we suggest you dive into this witty conversation with an industry expert:
Suggested Read: Gold ETFs vs. Gold Mutual Funds: Top pick for Investors in 2025
Global Economic Uncertainty and Safe-Haven Demand
Wondering why are the gold prices rising in India? Look no further than what’s happening around the world.
The past couple of years (2024–2025) have been anything but stable. The geopolitical tensions are flaring up everywhere:
- The Russia-Ukraine war is still dragging on.
- The Middle East remains a conflict hotspot.
- China-Taiwan tensions are keeping global markets on edge.
On top of that, the collapse of major banks like SVB and Credit Suisse in 2023 shook confidence in traditional banking systems.
With so much uncertainty, investors are playing it safe, moving their money from unpredictable stock markets into gold, which has always been a reliable store of value.
Throw in fears of a global recession and concerns over U.S. credit downgrades, and you’ve got the perfect storm pushing gold prices higher.
So, if you’ve been asking why gold price is rising or when will gold prices rise, the answer is simple—when the world gets shaky, gold shines brighter.
Why Are Central Banks Hoarding Gold?
Gold isn’t just popular among investors; it’s also a top pick for central banks. In 2024, global central banks purchased over 1,200 tonnes of gold, the highest annual figure ever recorded, according to the World Gold Council.
RBI’s Gold Strategy
The Reserve Bank of India (RBI) has been steadily increasing its gold reserves to reduce reliance on the U.S. dollar and protect against currency fluctuations. Countries like China, Turkey, and Russia are following a similar approach, using gold as a safeguard against sanctions and dollar dominance.
This surge in central bank gold buying has tightened supply and driven prices higher, playing a key role in the rising gold prices in India.
Falling Rupee, Rising Gold Prices
The Indian Rupee has been taking a hit, thanks to soaring oil import bills, concerns over the fiscal deficit, and the strength of the U.S. dollar. Currently hovering around ₹82 per USD, it has weakened quite a bit from its 2023 average of ₹79.
Since India imports nearly 900 tonnes of gold every year, any dip in the rupee makes gold more expensive. A weaker currency means higher import costs, and that extra burden eventually gets passed on to consumers.
With rising import bills and shrinking forex reserves, the pressure keeps mounting. This is yet another reason behind the ongoing surge in gold prices in India.
Why Gold Prices Go Up When Everything Gets Expensive
Things are getting pricier, and inflation isn’t slowing down. In India, the cost of living is rising by about 6%, which is higher than what the RBI is comfortable with.
Now, imagine you put your money in a bank, but the interest you earn is less than how fast prices are going up. That means your money is actually losing value. When this happens, people look for a safer option—like gold.
Gold has always been seen as an inflation hedge, and this remains a major cause of rise in gold price in 2025.
Pro Tip: Use an inflation calculator to plan your investments smartly.
Equity Market Volatility & Flight to Safety
The Indian stock market has been on a rollercoaster lately, especially tech stocks. Since October 2024, foreign investors have pulled out a massive $28 billion, causing the Nifty 50 index to drop by 13% from its peak in September. The Nifty IT index is struggling even more, falling into a bear market and losing 3.2% in March alone.
With stocks looking risky, Indian investors are turning to gold for safety.
And guess what? On March 20, 2025, gold prices hit an all-time high! 24-carat gold was selling at ₹90,450 per 10 grams, while 22-carat gold touched ₹82,910 per 10 grams.
But here’s the twist: since gold has become so expensive, fewer people are buying it, leading to record-high discounts on physical gold.
As gold prices keep climbing, more and more people are Googling questions like “Will gold prices go up even more?” and “Should I invest in gold now?“
Everyone’s trying to figure out the best place to park their money in these unpredictable times!
Suggested Read: Will the Stock Market Witness an Explosive Recovery in 2025? Key Insights & Predictions
Gold & Shaadis: A Match Made in Heaven
In India, gold isn’t just metal, it’s emotion. And when it comes to weddings, no celebration is complete without it! With 2024 and 2025 bringing back grand shaadis and festive celebrations after the pandemic lull, the demand for gold is soaring.
Wedding Boom & Festive Gold Rush
From November 2024 to July 2025, India is set to witness a record-breaking number of weddings. Add festivals like Akshaya Tritiya and Diwali to the mix, and gold shopping reaches another level.
Rural Prosperity = More Gold Buying
A good monsoon season and higher minimum support prices (MSPs) have put more money in farmers’ hands, making rural India a key driver of gold demand.
Even with sky-high prices, people aren’t shying away from buying gold, keeping demand strong and pushing prices even higher!
Government Rules & Taxes on Gold
GST & Import Duty
Gold isn’t just expensive because of demand—it’s also taxed! In India, buying gold comes with a 3% GST and 12.5% import duty. Even a small change in these rates or just rumors about them can shake up prices.
Budget Announcements & Buying Rush
The 2025 Union Budget didn’t increase gold taxes, but it did hint at stricter rules for gold transactions. Just the fear of future tax hikes has pushed people to buy gold early, adding to the price surge.
Govt’s Push for Formal Gold Trade
Schemes like the Gold Monetization Scheme (GMS) and digital gold transactions were introduced to make the gold market more organized. But so far, they haven’t caught on in a big way.
Even though these policies don’t always make the headlines, they play a big role in influencing why gold prices are rising in India.
Gold Goes Digital: A New Way to Invest
Gold isn’t just about jewellery anymore. With stockbroking apps, you can easily start investing in digital gold with low amounts.
More People Choosing SGBs & Gold ETFs
Sovereign Gold Bonds (SGBs) are a hot pick, because they not only grow in value, but also give a 2.5% annual interest—a double benefit! Meanwhile, Gold ETFs are seeing record inflows as investors look for smarter ways to invest in gold without actually holding it.
Millennials Driving Change
Gone are the days when buying gold meant visiting a jewellery store. Millennials now prefer digital gold and passive gold investments, making it more popular than ever.
With so many ways to invest, this shift is another reason behind the gold price rise in India.
What’s Next for Gold Prices?
What Experts Say
Many big players like established AMCs believe gold will stay strong in 2025. As per recent reports, if the inflation remains high, prices could hover around ₹7,200 per gram.
What Could Change?
- If the U.S. Fed cuts interest rates, gold prices might dip.
- If global tensions ease, demand could slow down.
- If stock markets boom, investors may move their money away from gold.
What Should You Do?
If you’re wondering, what will happen here, then the smart move is not to buy everything at once. Instead, buy in small amounts over time to balance the risk.
Experts suggest keeping 10–15% of your portfolio in gold, preferably through SGBs or ETFs, for steady, long-term growth.
Bottom Line
From global turmoil to a weakening rupee, from central banks hoarding gold to India’s undying love for it; every factor has aligned to push gold prices to record highs.
Whether you’re an investor looking for stability, a bride-to-be eyeing that perfect jewelry set, or just someone wondering “Why is gold price rising today?”; knowing the bigger picture helps you make smarter choices.
But here’s the deal: gold shines bright today, but smart investing is all about balance. Don’t let the hype decide for you. Think long-term. Diversify wisely.
Will gold prices rise further? No one knows for sure. But if history has taught us anything, gold has always been the safe bet when the world feels uncertain.
What’s your take? Drop your thoughts in the comments!
FAQs
Why is the gold price going up?
Gold prices in India are rising due to global tensions, high inflation, central bank buying, and a weakening rupee. Strong cultural demand during the wedding season and festivals is also pushing prices higher, making gold a preferred safe-haven investment in uncertain times.
Are gold prices expected to rise?
Yes, gold prices are expected to remain strong in 2025. Factors like inflation, rupee depreciation, global instability, and rising demand for digital gold and ETFs support a continued uptrend. However, minor corrections may occur if geopolitical tensions ease or interest rates fall.
What will gold be worth in 2025?
Gold is currently around ₹6,900 per gram. Experts forecast it may reach ₹7,200–₹7,800 per 10 grams by year-end, depending on inflation, global events, and rupee value. Bullish trends could push prices higher if safe-haven demand continues to rise.
Will gold reach 1 lakh in India?
Gold reaching ₹1 lakh per 10 grams is possible in the long term but unlikely in 2025. It would require major global crises, high inflation, or significant rupee depreciation. Current projections suggest a steady rise, not a sharp jump to ₹1 lakh this year.
