Gold prices in India continued their bullish momentum for the third consecutive day, reaching new record highs on Thursday, March 20, 2025. The rally was fueled by the US Federal Reserve’s decision to keep interest rates unchanged, while signaling two rate cuts by the end of this year.
The 24K gold price surged to ₹90,450 per 10 grams, marking an all-time high, while 22K gold traded at ₹82,910 per 10 grams across major Indian cities. The rally follows a sharp jump of ₹440 per 10 grams earlier this week, when it breached the ₹90,000 mark for the first time.
Meanwhile, silver prices also climbed, touching ₹1,05,100 per kg, hitting a new lifetime high in the domestic markets, even as global silver prices showed some weakness.
In international markets, spot edged up 0.2% to $3,052.92 per ounce, after touching an all-time high of $3,055.31 per ounce during the session.
Why Are Gold Prices Rising?
The sharp rally in prices is attributed to:
- US Federal Reserve’s Decision: The Fed kept interest rates steady at 4.25%-4.5%, but hinted at two rate cuts in 2025, boosting gold’s appeal.
- Weaker US Dollar: A dovish Fed policy typically weakens the dollar, making it cheaper for foreign investors, thus driving demand higher.
- Inflation Concerns: The Fed revised its inflation forecast upwards, signaling persistent price pressures, which further supports gold as a hedge against inflation.
- Economic Uncertainty: The economic slowdown in the US and global trade tensions have increased demand for safe-haven assets.
Let’s take a detailed look at the latest gold and silver prices in major Indian cities and how they have performed throughout the week.
Gold Prices in India on March 20, 2025
Rates in Major Cities (Per 10 grams):
| City | 22K (₹) | 24K (₹) |
|---|---|---|
| Delhi | ₹83,060 | ₹90,600 |
| Mumbai | ₹82,910 | ₹90,450 |
| Chennai | ₹82,910 | ₹90,450 |
| Kolkata | ₹82,910 | ₹90,450 |
Price Trends This Week
it has witnessed a consistent rally over the past few days, driven by global cues and investor demand. Below is a comparison of its prices over the past week:
| Date | 22K (₹ per 10g) | 24K (₹ per 10g) |
|---|---|---|
| March 20 | ₹82,910 | ₹90,450 |
| March 19 | ₹82,510 | ₹90,010 |
| March 18 | ₹82,500 | ₹90,000 |
| March 17 | ₹82,100 | ₹89,560 |
| March 15 | ₹82,200 | ₹89,670 |
| March 13 | ₹81,200 | ₹88,580 |
Silver Prices in India on March 20, 2025
Silver Rates in Major Cities (Per kg):
| City | Silver Price (₹) |
|---|---|
| Delhi | ₹1,05,100 |
| Mumbai | ₹1,05,100 |
| Chennai | ₹1,05,100 |
| Kolkata | ₹1,05,100 |
Silver Price Trends This Week
Similar to gold, silver prices have also shown a strong upward trend, reflecting the weaker US dollar and rising investor demand. Below is a comparison of silver prices over the past week:
| Date | Silver Price (₹ per kg) |
|---|---|
| March 20 | ₹1,05,100 |
| March 19 | ₹1,04,100 |
| March 18 | ₹1,04,000 |
| March 17 | ₹1,02,900 |
| March 15 | ₹1,03,000 |
| March 13 | ₹1,01,000 |
Why Are Silver Prices Rising?
While gold prices have outperformed silver, the white metal has also surged due to:
- Weaker Dollar: Silver, like gold, benefits from a weakening US dollar, as it becomes cheaper for foreign investors.
- Industrial Demand: Silver is widely used in electronics and renewable energy sectors, leading to higher industrial demand.
- Inflation Hedge: Investors turn to precious metals like silver during periods of economic uncertainty.
Interestingly, domestic silver prices hit record highs despite a 0.7% decline in global silver prices, which fell to $33.79 per ounce in early Asian trade.
Global Gold and Silver Market Overview
1. International Gold Prices Hit All-Time High
In the global markets, gold prices remained firm, with spot rising 0.2% to $3,052.92 per ounce. The precious metal had earlier touched a record high of $3,055.31 per ounce, reflecting strong investor demand.
2. Federal Reserve’s Policy Impact
The Fed’s decision to maintain interest rates at 4.25%-4.5% while signaling two rate cuts in 2025 has significantly influenced its prices. Lower interest rates generally:
- Reduce the opportunity cost of holding it making it more attractive.
- Weaken the US dollar, which boosts itsdemand among foreign investors.
3. Inflation and Trade Policies Weigh on Markets
The Fed revised its inflation forecast higher, signaling that price pressures remain stubbornly high. Additionally, recent trade tariffs imposed by the US government have created uncertainty about future economic growth, prompting investors to seek safe-haven assets.
What’s Next for Gold and Silver Prices?
1. Will it Continue to Rally?
Market analysts believe its prices could continue rising due to:
✅ Expectation of Fed rate cuts in 2025
✅ Higher inflation outlook
✅ Rising geopolitical tensions
2. Can Silver Catch Up?
Silver prices have been rising at a slower pace compared to gold, but experts suggest that if industrial demand increases, silver may see stronger gains in the coming months.
Conclusion: Gold & Silver Rally on Fed’s Dovish Signals
The gold price rally continues, with 24K hitting ₹90,450 per 10 grams and silver reaching ₹1,05,100 per kg in major Indian cities. The US Fed’s decision to hold interest rates steady while signaling rate cuts later this year has boosted investor sentiment, driving demand for safe-haven assets.
With inflation concerns persisting and economic uncertainties growing, gold and silver may continue their upward momentum in the coming weeks.
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