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With gold trading near record levels across major Indian cities, investors are wondering whether the current price stability is a sign of relief or the calm before another jump. What is driving this trend and should you buy now?
Prices show a marginal Rs 1 dip.
New Delhi: Gold prices in Delhi remained steady on Wednesday with a marginal decline of Rs 1 per gram. The 24-karat gold is priced at Rs 12,250 per gram, 22-karat at Rs 11,239 and 18-karat at Rs 9,198. The small correction follows a continuous upward rally in the previous weeks, influenced by international gold trends and the Indian festive season’s demand. Despite the slight dip, the precious metal continues to hover near record levels, attracting both investors and traditional buyers.
Several factors are influencing the current stability in gold prices. The ongoing geopolitical tensions in the Middle East, persistent inflation fears, and the fluctuating strength of the Indian rupee against the US dollar are playing a major role. Central banks around the world are increasing their gold reserves, adding to the demand. Additionally, domestic jewellery demand during the Diwali season kept prices buoyant, even as global markets showed minor corrections.
In Kolkata, gold prices remained slightly higher than in Delhi. The 24K variety traded close to Rs 12,270 per gram, while 22K gold was around Rs 11,255. The city’s strong festive sales and traditional buying habits continue to keep demand robust. Retail jewellers reported stable customer footfall, indicating confidence among buyers despite high prices.
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Mumbai’s bullion market recorded similar trends with 24K gold priced around Rs 12,240 per gram. The financial capital saw modest corrections as investors booked profits after the recent rally. Market analysts believe that fluctuations in import costs and currency movements are affecting gold sentiment in the city, which often mirrors international trends more quickly than other Indian metros.
In Bengaluru, the 24K gold rate hovered around Rs 12,260 per gram, showing consistency over the past week. The demand from tech professionals and festive gifting contributed to steady retail sales. Chennai, known for its deep-rooted gold culture, continued to record some of the highest prices at Rs 12,280 per gram for 24K and Rs 11,265 for 22K. Southern markets typically reflect strong marriage-season demand, keeping rates on the higher side.
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Hyderabad too followed the national trend with 24K gold trading around Rs 12,255 per gram. The market witnessed consistent retail buying driven by wedding season purchases and investment-led demand. Local jewellers indicated that most customers are still opting for smaller quantities as prices remain elevated.
Over the last month, gold prices have seen a steady upward trajectory of about 2 to 3 percent. The rally was fueled by concerns over global inflation and rising interest in safe-haven assets. Occasional profit booking led to minor dips, but the overall sentiment remains bullish. Analysts note that the correction seen today is minor and part of a normal consolidation phase after continuous gains.
Experts suggest that while gold is slightly overvalued in the short term, it remains a sound investment for long-term wealth protection. Investors looking to enter the market should consider phased buying or systematic investment to balance risk. Given the economic uncertainties and steady central bank demand, gold is likely to retain its shine in the coming months.
