Gold Price Rises ₹600 per 10 Gram: Why Safe-Haven Buying is Back in Trend
Gold price rises ₹600 per 10 gram, triggering renewed attention in India’s bullion and investment markets. With this jump, gold has once again reclaimed its safe-haven status as global uncertainties and domestic inflation weigh on investor sentiment. From casual buyers to seasoned investors, everyone is now re-evaluating gold’s place in their portfolios.
But what’s driving this sudden spike? Let’s decode the factors that pushed gold higher, what it means for the Indian economy, and what to expect in the near future.
US Trade Fears Spark Global Uncertainty
The biggest global catalyst behind this move is the rising tension around global trade. Recent signals from the US administration hint at the possibility of slapping up to 35% tariffs on imports from countries like China and Canada. These protectionist policies create ripple effects across markets, weakening currencies and raising fears of inflation.
As a result, global investors are turning to gold — a traditional hedge during economic and geopolitical distress. With the world still uncertain about supply chain stability, monetary policy, and global economic growth, the demand for gold has spiked again.
Weakening Rupee Boosts Domestic Gold Prices
Apart from global triggers, the Indian rupee’s slight depreciation against the US dollar has added to the upward pressure on gold prices. Since gold is traded globally in dollars, any weakness in the rupee makes it more expensive for Indian buyers.
This currency effect means that even if international gold prices are stable, Indian prices still climb. This is one of the key reasons gold price rises ₹600 per 10 gram in cities like Delhi, Mumbai, and Ahmedabad.
Safe-Haven Demand Returns
After months of shifting interest toward equities and cryptocurrencies, investors are once again moving toward gold. The metal has regained its importance as a “crisis-proof” asset.
With equity markets showing signs of weakness and bond yields stagnating, gold is once again in the spotlight. Investors are reallocating their portfolios to reduce risk exposure and lock in safety with gold-backed investments like ETFs, sovereign gold bonds, and digital gold platforms.
Festive Season Pre-Buying Begins
Another factor contributing to the price jump is the early onset of festive demand. Festivals like Raksha Bandhan, Onam, and Ganesh Chaturthi are just around the corner, followed by the heavy buying season during Navratri and Diwali.
Indian households traditionally purchase gold as part of auspicious rituals and investments. With the current trend of rising prices, many buyers are locking in rates early to avoid paying even more in the coming weeks.
Retailers across cities report a rise in footfalls and online orders for gold coins, light jewellery, and even bullion bars.
Central Bank Buying Adds Global Push
Interestingly, central banks across the globe — especially in emerging markets — have increased their gold purchases in the past few months. They’re reducing their dependence on foreign currencies and using gold as a hedge against reserve volatility.
This global buying by governments and institutions is creating scarcity in the bullion market, pushing up wholesale prices and eventually impacting retail gold rates across India.
Investment Demand: ETFs and Digital Gold See Spike
Platforms like Zerodha, Groww, and Paytm Gold are reporting a sharp increase in gold purchases through digital channels. At the same time, mutual fund houses offering gold ETFs (exchange-traded funds) have seen strong inflows in July.
Even sovereign gold bond schemes launched by the Government of India are seeing renewed interest, particularly among urban and millennial investors looking for tax-efficient, low-risk assets.
This reflects a behavioral shift — Indians are no longer just buying physical jewellery; they’re looking at gold as a long-term, structured financial investment.
Impact on Jewellery Sector
While rising prices usually hurt jewellery demand, Indian consumers remain emotionally attached to gold. Jewellers are cautiously optimistic and are promoting lightweight designs, combo offers, and early festive discounts.
Some brands have also introduced monthly instalment schemes to help consumers buy gold despite the higher prices. On-ground reports suggest that while bulk purchases are slow, the volume of individual transactions is increasing, particularly in Tier 1 and Tier 2 cities.
Analyst View: How High Can Gold Go?
Financial experts suggest that if global tensions escalate or central banks remain dovish on rate cuts, gold may climb further. Some projections see gold potentially touching ₹75,000 per 10 gram by early next year if global conditions worsen.
However, analysts also warn that profit-booking may occur if equity markets recover quickly or if the US reverses its tariff plans. In that case, gold prices may temporarily retreat.
Vinod Nair, Head of Research at Geojit Financial, notes, “Gold remains one of the most reliable assets during uncertain times. But investors must watch the dollar, inflation trends, and geopolitical outcomes to decide on long-term holdings.”
Long-Term Outlook: Should You Invest in Gold Now?
With gold price rises ₹600 per 10 gram and possibly headed higher, should you invest now? Here’s a summary based on your risk profile:
| Investor Type | Recommendation |
|---|---|
| Conservative saver | Start SIPs in gold ETFs or bonds |
| Moderate investor | Allocate 5–10% of portfolio to gold assets |
| Aggressive trader | Consider short-term gold futures (with stop loss) |
| Jewellery buyer | Buy before further festive price hikes |
Comparison: Gold vs Other Asset Classes (2025 so far)
| Asset Class | YTD Return (Approx) |
|---|---|
| Gold | +12% |
| Nifty 50 Index | +7% |
| Silver | +18% |
| Real Estate | +5% |
| Cryptocurrencies | -4% to +3% |
Gold’s performance is relatively strong compared to equities and crypto, making it a viable hedge and capital-preserving tool in uncertain times.
Conclusion
Gold price rises ₹600 per 10 gram due to a combination of global, domestic, and seasonal factors. From tariff threats to rupee weakness, and from festive buying to central bank accumulation, multiple drivers are converging to push prices higher.
While some may fear price volatility, the underlying fundamentals continue to support gold as a stable long-term asset. Whether you’re a small buyer or a strategic investor, gold deserves a relook in your portfolio today.
But tread with caution — prices could correct sharply if global headwinds ease. Stay informed, track market indicators, and diversify wisely.
Source: Economic Times
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