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On September 1, 2025, gold prices in India reached new highs due to global instability, strong dollar, high demand, and inflation concerns, making gold a preferred safe investment choice.
Why you should keep investing in gold? (Image Source: Internet)
New Delhi: Gold prices have seen a lot of volatility in recent months. Due to global instability and investors' inclination towards safe assets, gold prices have once again reached record levels. Today, on September 1, 2025, 24-carat gold is trading at Rs 105,880 per 10 grams in India, while 22-carat gold is being sold at Rs 97,050 and 18-carat gold at Rs 79,410 per 10 grams.
Gold prices in major cities
Gold prices in Delhi are slightly higher than in other cities. Here 24-carat gold is available at Rs 106,030 per 10 grams, 22-carat at Rs 97,200, and 18-carat at Rs 79,530 per 10 grams. In other major cities like Chennai, Mumbai, Kolkata, Bengaluru, Hyderabad, Kerala, and Pune, 24-carat gold is equally available at Rs 105,880 per 10 grams.
Gold investment considered safe option (Source: Internet)
22-carat gold is selling at Rs 97,050 in these cities and 18-carat gold at Rs 79,410 (except in Chennai). 18-carat gold is slightly more expensive in Chennai and is being sold at Rs 80,300 per 10 grams.
Now the question arises: how are gold prices determined?
There are many major reasons behind this. First of all, the position of the dollar in the international market and its value against the rupee matter a lot. Since the international prices of gold are fixed in dollars, when the dollar strengthens or the rupee weakens, the prices of gold in India increase.
The second important reason is tax and customs duty. India is the largest importer of gold, so import duty, GST, and other taxes directly affect its prices.
The third reason is global conditions such as war, economic recession, or changes in interest rates. Whenever uncertainty increases in the world, investors consider gold as a safe option instead of the stock market or other risky investments, which increases both its demand and price.
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The social and cultural importance of gold in India also affects its demand. There is a tradition of buying gold on weddings, festivals, and auspicious occasions, which increases seasonal demand.
Finally, when inflation rises or there is volatility in the stock market, people consider investing in gold better because it has long been considered an option that gives safe and stable returns. This is why gold prices keep changing constantly and fluctuations are common.
