News Today Logo

Posted 23 Apr 2025

2 min read

Key Global Factors Driving Price Surge

  • Geopolitical Tensions: Rising global conflicts and economic uncertainties have led investors to flock to gold, which is seen as a safe-haven asset.
  • US Federal Reserve Rate Cuts: With falling interest rates, the appeal of gold increases. As a non-yielding asset, gold becomes more attractive when the opportunity cost of holding cash or bonds drops. 
  • Weakening of the US Dollar: A declining dollar makes gold cheaper for buyers using other currencies, thereby boosting demand.
  • Central Bank Accumulation: Central banks, especially in Asia, are aggressively purchasing gold to reduce dependency on the US dollar and diversify reserves.

India’s Gold Market 

  • India is the world’s 2nd largest consumer of gold, just after China. In 2024, India's gold demand reached 802.8 tonnes.
  • Approximately 85% of India’s gold is imported, making domestic prices highly sensitive to international trends.

Reasons for High Gold Demand in India

  • Financial Security: Gold is trusted as a long-term store of value, especially during inflation or market instability.
  • Cultural & Religious Significance: Gold is considered auspicious and forms an essential part of festivals like Diwali, Dhanteras, and Akshaya Tritiya.
  • Wedding Season Boost: Gold purchases spike during wedding season, with jewelry being a traditional and prestigious gift for brides.
  • In rural many people lack access to banks/stock markets. For them, gold serves as a trusted and liquid asset for saving, investing, or even borrowing.

Gold Reserves          

India 

  • Gold Ore: The largest resources in terms of gold ore (primary) are located in Bihar (43%), followed by Rajasthan (24.92%), and Karnataka (20%). 
  • Metal Content: In terms of metal content, Karnataka remained on top, followed by Rajasthan, Andhra Pradesh, and Bihar.

World 

  • Major Holders of Gold Reserves: United States, followed by Germany and Italy.
  • Major Exporters: Germany, followed by the European Union and Switzerland (World Integrated Trade Solution, 2023). 
  • Tags :
  • Gold
  • Gold Prices
Watch News Today
Width resize handle
Height resize handle

Search Notes

Filter Notes

No notes yet

Create your first note to get started.

No notes found

Try adjusting your search criteria.

Subscribe for Premium Features