Gold Prices Surge to New Record Highs in India Amid Fed Announcement
March 20, 2025 – Continuing a remarkable rally, gold prices have reached unprecedented levels in major cities across India for the third consecutive day, driven by expectations around the US Federal Reserve’s recent decision to hold interest rates steady. On Thursday, March 20, the price of 24K gold rose by ₹10, reaching an all-time high of ₹90,450 per 10 grams, while the 22K variant climbed to ₹82,910 per 10 grams.
Market Dynamics in Gold Prices
Gold prices had initially crossed the ₹90,000 mark for the first time earlier this week. The surge began on Tuesday when the value jumped by ₹440 per 10 grams, closing at ₹90,000. Following this, prices saw further escalation on Wednesday, reaching ₹90,010 per 10 grams, cementing a trend induced by favorable market conditions and investor sentiments towards gold as a stable asset.
In global markets, spot gold experienced a slight rise of 0.2%, reaching $3,052.92 per ounce after peaking at an all-time record of $3,055.31 during the trading session.
The price rally comes on the heels of the Federal Reserve’s decision to maintain its benchmark overnight interest rate in the range of 4.25% to 4.5%. While this decision was widely anticipated, the Fed also hinted at two potential quarter-percentage-point cuts to interest rates by the end of the year. This development has sparked concerns over economic volatility, prompting shifts in trading behaviors, particularly in gold and other safe-haven assets.
Current Gold Prices Across Major Indian Cities
As of March 20, here are the gold prices across several major Indian cities:
| City | 22K Gold (per 10gm) | 24K Gold (per 10gm) |
|---|---|---|
| Delhi | ₹83,060 | ₹90,600 |
| Mumbai | ₹82,910 | ₹90,450 |
| Chennai | ₹82,910 | ₹90,450 |
| Kolkata | ₹82,910 | ₹90,450 |
Silver Prices Also Hit New Highs
In addition to gold, silver prices followed suit, increasing by ₹100 to reach a new height of ₹1,05,100 per kg in major Indian markets. Despite a decline in global silver prices, which fell by 0.7% to $33.79 per ounce in early Asian trade on Thursday, the domestic market for silver managed to maintain its upward momentum.
Detailed Silver Prices in Major Cities
| City | Silver Price (per kg) |
|---|---|
| Delhi | ₹1,05,100 |
| Mumbai | ₹1,05,100 |
| Chennai | ₹1,05,100 |
| Kolkata | ₹1,05,100 |
Trends This Week: A Comparative Analysis
The trend of rising gold and silver prices showcases a robust upswing over the past week, impacted by global market dynamics and economic indicators. Here is a comparative snapshot of prices over the past week:
| Date | 22K Gold (per 10g) | 24K Gold (per 10g) | Silver Price (per kg) |
|---|---|---|---|
| Mar 20 | ₹82,910 | ₹90,450 | ₹1,05,100 |
| Mar 19 | ₹82,510 | ₹90,010 | ₹1,04,100 |
| Mar 18 | ₹82,500 | ₹90,000 | ₹1,04,000 |
| Mar 17 | ₹82,100 | ₹89,560 | ₹1,02,900 |
| Mar 15 | ₹82,200 | ₹89,670 | ₹1,03,000 |
| Mar 13 | ₹81,200 | ₹88,580 | ₹1,01,000 |
Conclusion
The continued rise in gold and silver prices reflects a response to the economic signals from the US Federal Reserve and the broader global economic landscape. Investors and consumers alike are advised to stay informed on market trends as these changes unfold.
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