As of February 4, 2025, gold prices in India have surged by ₹400, reaching a record high of ₹85,300 per 10 grams in Delhi. This increase follows a closing price of ₹84,500 the previous day and is primarily attributed to the sharp depreciation of the Indian rupee, which fell 55 paise to an all-time low of 87.17 against the U.S. dollar [b1c92e11]. International gold futures have also hit a record high of $2,862.90 per ounce, reflecting a broader trend in the global market [b1c92e11].
This recent spike in gold prices comes on the heels of earlier fluctuations, where prices had previously reached ₹80,312 per 10 grams on January 26, 2025, before experiencing a decline due to profit-booking and speculation surrounding U.S. Federal Reserve rate cuts [337591fe]. The geopolitical landscape, particularly fears of a potential 'Trade War 2.0', has led to increased allocations in gold as a safe haven asset, according to Jateen Trivedi from LKP Securities [b1c92e11].
In addition to the rupee's decline, market analysts are closely monitoring upcoming U.S. economic data, which is expected to significantly influence future gold prices. Praveen Singh from Mirae Asset Sharekhan emphasized the importance of macroeconomic indicators in shaping market expectations [b1c92e11].
Earlier in the year, the gold market had seen fluctuations influenced by geopolitical tensions, particularly from the Russia-Ukraine conflict, and the impact of U.S. tariffs on imports from Mexico and Canada [337591fe]. As the wedding season in India continues to drive demand, market participants remain cautious, with critical support for gold noted at $2,740 per ounce and resistance at $2,790 [337591fe]. With April gold futures on the MCX reaching ₹83,360 per 10 grams following the Union Budget presentation, investors are advised to consider phased buying strategies during market dips [b1c92e11].