Gold Price Surge: Even at ₹1 Lakh per 10g, India’s Gold Demand Will Remain Strong

 

📈 Gold Hits ₹84,657 Per 10g | RBI Increases Gold Reserves | 2024 Gold Demand Reached 802.8 Tons

Gold Prices Soar to Record Highs in 2025

Gold continues to rewrite history, setting new all-time highs. On Wednesday, gold prices surged to ₹84,657 per 10 grams, with some cities crossing the ₹86,000 mark. With this upward trend, experts predict that gold could reach ₹1 lakh per 10 grams in the coming years. But will this deter Indian buyers? Absolutely not!

According to market statistics, gold demand in India remains strong and unwavering, despite soaring prices.

📊 India’s Gold Demand Remains Robust

🔹 Gold demand in 2024: 802.8 tons (up by 5% from 2023)
🔹 Total gold purchase value in 2024: ₹5,15,390 crore (+31% from 2023)
🔹 Projected gold demand in 2025: Between 700-800 tons

According to the World Gold Council (WGC), gold demand in India has remained resilient due to lower import duties, festive season purchases, and strong wedding demand.

📈 Record-Breaking Gold Prices in 2024 & 2025

Gold has seen a massive surge in the last year:

✅ Gold price on January 1, 2024: ₹79,390 per 10 grams
✅ Gold price in February 2025: ₹85,800 per 10 grams
✅ Total increase in gold price in one year: ₹6,410 (+8.07%)

With no slowdown in demand, experts believe gold could touch ₹1 lakh per 10 grams soon.

💰 Why Is Gold Demand Rising Despite High Prices?

Several key factors are driving this surge in gold prices and demand:

✔ Rising geopolitical tensions worldwide
✔ Central banks cutting interest rates globally
✔ US Federal Reserve rate cuts boosting gold’s appeal
✔ Stronger performance of the US dollar index
✔ Increased investment in gold by major economies, including India
✔ Uncertainty in stock markets leading investors to gold as a safe haven

🇮🇳 India’s Gold Market: A Closer Look

📌 Annual gold purchases in India: 800 tons (on average)
📌 Annual expenditure on gold: ₹3.6 – ₹4 lakh crore
📌 Indian households hold 80% of their gold in jewelry form
📌 Gold demand rebounded post-COVID, up from 445 tons in 2020

🏦 RBI Quadruples Gold Purchases in 2024

The Reserve Bank of India (RBI) has significantly increased its gold reserves:

✔ Gold purchases in 2023: 16 tons
✔ Gold purchases in 2024: 73 tons (+400% increase)

This massive increase in RBI’s gold holdings indicates a strategic move towards strengthening India’s gold reserves.

💎 Investment in Gold Beyond Jewelry

While gold jewelry demand dipped by 2% in 2024, investment in gold ETFs, digital gold, and gold coins & bars has increased substantially. Investors are moving towards paper gold as a secure investment option amid global uncertainties.

🌍 Global Gold Demand Trends

📊 Gold demand worldwide in 2024: 4,974 tons (+1% YoY)
📊 Global gold demand in 2023: 4,945.9 tons

While India’s gold demand remains strong, global demand growth has been slower due to high prices and economic slowdown in key markets.

🔮 What’s Next for Gold in 2025?

🔸 Gold prices are expected to continue their upward trend
🔸 Domestic demand will remain strong, driven by weddings & festivals
🔸 Investment in gold-backed assets (ETFs, digital gold) will rise
🔸 Central banks worldwide will continue increasing their gold reserves

Experts believe that even at ₹1 lakh per 10 grams, gold’s demand will remain robust in India, as it is deeply ingrained in the country’s culture, economy, and investment strategies.