Gold Hits Record Levels in India
Gold prices in India reached an all-time high on September 16, 2025, reaching ₹1,11,930 per 10 grams for 24 karat gold. On the Multi Commodity Exchange, October Gold futures hit ₹1,10,548 per 10 grams, while December futures climbed to ₹1,11,599. This is an increase of ₹870 in a single day, reflecting powerful market movements. Experts say that this increase is being driven by expectations of a 25-point interest rate cut by the American Federal Reserve, along with a weakening US dollar. Investors are moving towards gold as a safe investment due to global uncertainty, pushing prices to record levels ahead of the Indian festive season.Â
Festival Season Demand Shows Mixed Trends
The price increase comes just before India’s peak festive season arrives, including Navratri, Dussehra, and Diwali, which usually attracts gold buying. However, early reports show a drop in consumer demand. The India Bullion & Jewellers Association reported a 28% decline in gold purchases during the period from Raksha Bandhan to Onam compared with last year, falling to 50 tonnes.
Surendra Mehta, IBJA’s national Secretary, said high prices are discouraging some buyers from buying gold. At the same time, some retailers report steady sales, with customers looking for lighter and lower carat jewellery to manage costs. Malabar group chairman, MP Ahammad, said his stories saw a 5% rise in volume and a 27% increase in sales value, showing that buyers are adapting to the changing prices.
Investment Demand Keeps Growing
While festival buying is affected, investment demand for gold remains strong. Gold EFTs in India rose to $233 million in August 2025, which is up 67% from July. Investors are looking at gold as a hedge against inflation and uncertain economic conditions. The World Gold Council predicts that if the gold prices stay above $3000 per ounce, India’s total demand for the year may fall to 700 tonnes, which might be the lowest in four years. Analysts predict that higher prices may trigger some profit-taking, especially during the Indian wedding season.
FAQs
- What is the current gold price in India?
The current gold price in India has reached a record of ₹1,11,930 per 10 grams
- Why are gold prices rising in India?
The prices are rising due to expectations of a US Federal Reserve rate cut and a weaker dollar.
- Is investment demand for gold still strong?
Yes, the investment demand for gold is still strong, with a 67% increase in net inflows in August 2025.
- Will the gold prices fall soon in India?
Analysts expect some profit-taking if the price goes above ₹1,10,000, but overall demand, especially from investors, remains strong.
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