Over the last 2-3 years, gold prices have skyrocketed. In the international market, Gold trades at $3,200, up over 30% from the same time last year and 77% from the recent low of $1,820 posted in November 2022. The all-time high price of $3,500 was recorded on April 22, and since then, the prices have fallen off the grid.
Gold prices in India have also shown a falling trend over the last four weeks. After recording an all-time high of Rs 1 lakh on April 22, the gold rate today in India for 10 grams of 24 carat of the yellow metal is Rs 93,170. From the peak, gold has fallen by nearly 7% in just one month.
Studies show gold prices remain stagnant for years and then suddenly start to rise. The recent bull run in gold that started about three years back is on account of a variety of reasons.
Indian families generally favor 22-carat gold for wedding jewelry, with 18-carat gold being less popular among these buyers. Nearly 50% of gold jewelry demand comes during the wedding season in India.
Rising gold prices impact the buying sentiments of gold consumers. At higher gold prices, gold buyers are considering looking at 18-carat gold instead of 22-carat gold.
Comparatively, 18-carat gold is cheaper than 22-carat gold, and, therefore, buyers prefer jewellery at lower price points. “While meeting the durability and style against affordability, the purity options preferred by customers are through lighter jewelry of 18 Carat. That’s the consumer behavior when it comes to jewelry form of buying gold,” says NS Ramaswamy Head -Commodity desk and CRM.
The gold rate today in India for 22-carat gold for ten grams is Rs 85,410, while the 18 carat gold price today is Rs 69,880. The price difference between 18 and 22-carat gold is Rs 15,000 for ten grams.
Gold prices in top Indian cities for 18 Carat, 22 Carat, and 24 Carat can be seen here.
“Due to the elevated prices, the jewelry buying has witnessed a drop in sales volume, but the overall absolute sales value is still intact and much higher,” adds Ramaswamy.
Many gold buyers are not only shifting to 18-carat gold jewelry but also playing a waiting game. Gold buyers, particularly those purchasing wedding jewelry and ornaments, are anticipating a further fall in gold prices.
In the international markets, gold is down by 10% from all-time highs because of these reasons.
“Gold is still struggling, and prices could drop this week as the market takes a wait-and-see stance as the initial reaction to the U.S. credit rating fades and there is some hope that Ukraine and Russia could reach a truce,” says Dr. Renisha Chainani, Head – Research at Augmont.
In reality, it is an extremely unpredictable economic landscape out there. The US credit rating has been downgraded, citing large fiscal deficits and rising interest costs. The US 10-year yield is at a 3-month high, indicating a rise in rates as the health of the US economy remains a concern.
US Fed Chief Powell remains hawkish and unwilling to cut rates amidst the tariff’s potential impact on inflation. Gold’s performance in 2025 is expected to remain upbeat despite economic and geopolitical uncertainties, with occasional dips and corrections.