Gold rush: Why are Gold prices at an all time high? Factors affecting the exponential rise
Gold has held a special place in Indian society for thousands of years, influencing culture, religion, and the economy. It is not only a precious metal, but also embodies the sentiments of tradition, prosperity, and spirituality in India. It is one of the most important functions of rituals and ceremonies, especially weddings, that symbolies wealth and status and often is believed to carry the Hindu Goddess of wealth, Laxmi Ji. Beyond that, it also extends across generations as family heirlooms and plays a vital role in India’s economy, acting as a store of value and a safeguard against inflation and currency fluctuations.
Growth and rise in Gold prices over the years
Gold has been a symbol of wealth for centuries. The Lydians made the first Gold-silver coins back in the 7th century BCE. Then, in 1900, the US tied the dollar to Gold, and this system lasted until 1971.After the 2008 financial crash, Gold surged with double-digit gains in 2009 and 2010, hitting a high in 2011 before falling over the next few years , where the prices dropped to about 45% from its peak. In 2020, when the pandemic rattled markets, Gold topped ₹5,854.50 per gram for the first time.Most recently, in 2025, rising US trade tensions and market uncertainty pushed investors toward Gold once again, driving prices past ₹90,750 for 10 grams in March and even higher in April.
How is Gold culturally and historically important in India
Gold’s significance in India goes beyond its glow and status symbol, it represents purity, prosperity, and divine blessing. Since ancient times, Gold has influenced social and religious practices, including festivals like Diwali and Akshaya Tritiya, where buying Gold is seen as auspicious. Historically, important trade routes like the Silk Road enhanced the flow and value of Gold across regions, embedding it firmly in commerce and wealth creation.
Rise in Gold prices 2025
Why Gold is cherished in jewellery
Gold’s physical properties make it ideal for making jewellery:
- Durability: Gold resists corrosion and retains its shine over time, making it perfect for items worn daily.
- Malleability: Its softness allows jewellers to create detailed designs without breaking.
- Ductility: Gold can be drawn into thin wires for detailed chains and other components.
- Conductivity: This property aids in manufacturing processes like soldering, ensuring jewellery holds together well.
Why is Gold preferred over Silver and Copper
Gold is rarer and more durable than silver and copper, which adds to its value. Unlike silver, Gold does not tarnish, and unlike copper, it does not corrode. Historically, Gold is deeply linked to symbols of wealth and power, making it more desirable. Its use in currency, religious artifacts, and industrial applications like electronics further elevates its status and price.
Rise in Gold prices 2025
Factors influencing Gold prices
Gold prices fluctuate because of various global and economic elements:
- Geopolitical Events: Tensions increase Gold demand as a safe investment.
- US Dollar Strength: A weaker dollar usually pushes Gold prices up.
- Inflation: Rising inflation pushed an investment in Gold.
- Interest Rates: Lower rates make Gold more attractive compared to other assets.
- Supply and Demand: Buying patterns also affect prices dynamically.
Is now a good time to buy gold
Gold prices move up and down based on many things—like the economy, inflation, interest rates, and global events. But the connection isn’t always predictable, so investors need to look at the full picture.According to a report published in Bajaj Finserv, if the economy is shaky, inflation is rising, or there’s global tension, gold often becomes a “safe haven”, a place to protect your money. Right now, if interest rates are low, that can also make gold more attractive, since it doesn’t pay interest.But before buying, check where prices are. If gold is already at a high, you might want to wait for a dip.
Gold loans are another option
Rise in Gold prices 2025
If you need cash but don’t want to sell your gold, you can use it to get a loan. This way, you get money while still keeping ownership of your jewellery.Knowing how gold prices move can help you get a better deal if you’re thinking about taking a gold loan.In any case, it’s smart to spread your investments out (don’t put all your eggs in one basket) and talk to a financial advisor. With the right approach, gold can be a solid part of a balanced investment plan.
