Gold prices in India have dipped due to global market trends
Gold has always been a safe-haven asset, deeply embedded in India’s cultural and financial landscape. However, recent global market trends and US tariff delays have led to a dip in gold prices. Despite this, ICRA forecasts a 12-14% rise in jewellery consumption in FY26, signaling strong demand in the coming years.
This blog explores the current gold price fluctuations, the impact of US tariffs, and the future outlook for gold jewellery consumption in India.
Table of Contents
Gold Price Fluctuations: What’s Happening?
Gold prices in India have dipped due to several factors:
- US Tariff Delays: The postponement of a 50% tariff on EU goods by the US has eased global market tensions, reducing safe-haven demand for gold.
- Global Market Trends: Gold prices have been influenced by fluctuations in the US dollar index, making gold cheaper for holders of other currencies.
- Investor Sentiment: With geopolitical tensions easing, investors are shifting focus to equities, leading to a temporary decline in gold prices.
Current Gold Prices in India
Here’s a table with the latest gold prices in India as of May 29, 2025:
| City | 24K Gold (per 10g) | 22K Gold (per 10g) | 18K Gold (per 10g) |
|---|---|---|---|
| Mumbai | ₹97,040 | ₹88,950 | ₹72,780 |
| Delhi | ₹97,190 | ₹89,100 | ₹72,900 |
| Bangalore | ₹97,040 | ₹88,950 | ₹72,780 |
| Chennai | ₹97,040 | ₹88,950 | ₹72,780 |
| Kolkata | ₹97,040 | ₹88,950 | ₹72,780 |
| Hyderabad | ₹97,040 | ₹88,950 | ₹72,780 |
Gold prices have dipped slightly due to global market trends and US tariff delays. If you’re considering investing, this could be a good opportunity to buy at lower rates. Let me know if you need a deeper analysis on gold price trends!
Gold Jewellery Consumption to Rise in FY26
Despite the short-term dip in gold prices, ICRA predicts a 12-14% increase in gold jewellery consumption in FY26. Several factors contribute to this expected growth:
- Cultural Demand: Weddings and festivals continue to drive gold jewellery purchases in India.
- Investment Appeal: Gold remains a preferred investment option, especially amid economic uncertainties.
- Lower Prices Boost Buying: The current dip in gold prices may encourage more consumers to invest in jewellery.
Impact of US Tariffs on Gold Jewelery Exports
The US tariffs on Indian jewellery exports could have a significant impact:
- Higher Costs: The US is considering a 5-20% tariff on Indian gem and jewellery imports, which could reduce exports.
- Shift in Manufacturing: Indian jewellery manufacturers may relocate to UAE, Singapore, and Hong Kong to avoid high tariffs.
- Market Competition: Countries like Switzerland and France are increasing their market share in the US, posing a challenge for Indian exporters.
Investment Strategies Amid Gold Price Fluctuations
For investors looking to navigate the gold market, here are some strategies:
- Buy During Dips: Gold prices are currently lower, making it a good time to invest.
- Diversify Investments: Consider a mix of physical gold, ETFs, and sovereign gold bonds.
- Monitor Global Trends: Keep an eye on US trade policies, inflation rates, and geopolitical events.
Conclusion
While gold prices have dipped due to US tariff delays, the long-term outlook remains strong. With ICRA predicting a 12-14% rise in jewelry consumption in FY26, investors and jewelry buyers can expect steady demand growth.
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