The weakening of the Indian rupee against the dollar and the new trade policies of US President Donald Trump have seen a tremendous jump in gold prices.
22 carat gold has crossed ₹ 80,000.
24 carat gold is trading above ₹ 87,400 per 10 grams.
Today, 12 February 2025 (Wednesday), gold price gained up to ₹ 400.
Why are gold prices rising?
Global trade war fears
- The concern of global trade has increased after the US announced 25% import duty.
- Investors are investing in gold to avoid risk, increasing prices.
Stock market volatility and fear of recession
- Gold is considered a safe investment option due to the possibility of global economic recession.
Dollar strength and rupee weakness
- Gold imports in India become expensive due to the fall in the rupee, which increases the prices of gold.
Effect of interest rates and inflation
- Investors are considering gold as a safe investment due to changes in interest rates and possibility of inflation.
Today’s 22 and 24 carat gold prices (12 February 2025)
| City name | 22 carat gold rate (₹/10 grams) | 24 carat gold rate (₹/10 grams) |
|---|---|---|
| Delhi | ₹ 80,260 | ₹ 87,540 |
| Chennai | ₹ 80,110 | ₹ 87,390 |
| Mumbai | ₹ 80,110 | ₹ 87,390 |
| Kolkata | ₹ 80,110 | ₹ 87,390 |
In Delhi, 24 carat gold is trading at ₹ 87,540 and 22 carat gold at ₹ 80,260 per 10 grams.
In Mumbai, Chennai and Kolkata, 22 carat gold is trading around ₹ 80,110 and 24 carat gold ₹ 87,390.
Silver price falls on 12 February 2025
Silver is trading at ₹ 99,400 per kg, which has become a bit cheaper than the previous day.
How is the price of gold fixed in India?
International market prices:
- The price of gold in Comex and London Bullion Market has a direct impact on the price of Indian gold.
Rupee strength or weakness:
- When the rupee is weak against the dollar, gold imports become expensive, which increases prices.
Tax imposed by the government:
- Custom duty, GST and other taxes directly affect gold prices.
Marriage and festivals season:
- The demand for gold increases during marriage and festivals, which also leads to prices.
