While Sitharaman Was Reading the Budget, Gold Prices Witnessed a Major Surge!

Gold Prices

Finance Minister Nirmala Sitharaman presented the Union Budget, in which there was no special announcement regarding gold. However, gold prices soared to a record high of ₹84,900 per 10 grams.

Key Highlights:

 Gold has become ₹5,510 more expensive this year
Gold reached a record high in the bullion market today
Gold prices have increased by 7% in 2025 so far
No announcement regarding gold was made in the budget

Gold Prices Hit an All-Time High

New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget 2025 today. Although no specific announcement was made regarding gold, its prices reached a record high on the budget day. On Friday, gold was selling at ₹84,900 per 10 grams in New Delhi, marking an all-time high.

According to the All India Sarafa Association, the price of 24-carat gold surged by ₹1,100, continuing its upward trend for the third consecutive day. At the beginning of the year, gold was priced at ₹79,390 per 10 grams, and since then, it has increased by ₹5,510 or 7%.

Similarly, 22-carat gold also witnessed a rise of ₹1,100, reaching ₹84,500 per 10 grams. Silver prices also surged, increasing by ₹850 to reach ₹95,000 per kilogram.

Impact of Previous Budget on Gold & Silver Prices

It is noteworthy that in July 2024, during the full budget, the Finance Minister had reduced import duty on gold and silver from 15% to 6%—the biggest cut ever. This led to a 104% increase in gold imports by August 2024.

Why Are Gold Prices Rising?

1. Global Gold Prices:

• In the international markets, spot gold prices surpassed $2,800 per ounce, creating a positive sentiment in Indian markets as well.

2. Safe-Haven Investment Demand:

• The U.S. government’s threats of imposing new tariffs on Mexico, Canada, and China have pushed investors towards gold as a safe investment.

3. Monetary Policies:

• Expectations of interest rate cuts by major central banks, including the European Central Bank (ECB), have further supported the rise in gold prices.

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What Should Investors Do?

Experts suggest that gold prices may continue to rise in the short and medium term. Due to global economic uncertainties and changes in U.S. policies, the demand for gold is expected to increase.

With Donald Trump possibly becoming the U.S. President again, trade tensions with China and Mexico are escalating due to potential higher import duties, leading to global trade disruptions.

Given this uncertainty, investing in gold remains a safe option.