Key Points
- Gold prices in India surged by ₹220 per 10 grams on May 5, 2025, with 24-carat gold reaching up to ₹95,880 in Delhi.
- The surge follows weeks of stock market volatility and global uncertainty after US President Donald Trump imposed sweeping tariffs.
- Silver prices, in contrast, fell by ₹1,000 per kg, settling at ₹97,000 in most cities.
- Gold has gained over ₹19,000 per 10 grams since January 2025, marking one of its strongest rallies in years.
- Major metros like Delhi, Mumbai, Kolkata, and Chennai saw similar upward trends in gold, with minor variations in rates.
New Delhi: After weeks of stock market turbulence, Indian gold investors found relief on Monday, May 5, 2025, as gold prices surged sharply across the country. The rally comes amid global economic uncertainty fueled by US President Donald Trump’s aggressive new tariffs, which have roiled equity markets and sent investors flocking to safe-haven assets like gold.
Gold Surges, Silver Slides
On Monday, the price of 24-carat gold jumped by ₹220 per 10 grams, pushing rates to as high as ₹95,880 in Delhi and ₹95,730 in Mumbai, Kolkata, and several other major cities. The price of 22-carat gold also climbed, reaching ₹87,900 per 10 grams in Delhi and ₹87,750 in Mumbai, Kolkata, Hyderabad, and other metros. In contrast, silver prices fell by ₹1,000 per kilogram, with most cities quoting rates around ₹97,000 per kg, while southern cities like Chennai and Hyderabad saw higher prices near ₹1,08,000 per kg.
City-Wise Gold and Silver Rates (May 5, 2025)
| City | 22K Gold (10g) | 24K Gold (10g) | Silver (1kg) |
|---|---|---|---|
| Delhi | ₹87,900 | ₹95,880 | ₹97,000 |
| Mumbai | ₹87,750 | ₹95,730 | ₹97,000 |
| Kolkata | ₹87,750 | ₹95,730 | ₹97,000 |
| Chennai | ₹87,750 | ₹95,530 | ₹1,08,000 |
| Hyderabad | ₹87,750 | ₹95,730 | ₹1,08,000 |
| Bhopal | ₹87,590 | ₹95,550 | ₹97,000 |
| Indore | ₹87,590 | ₹95,550 | ₹97,000 |
Note: Minor variations may occur due to local demand, taxes, and transport costs.
Why Are Gold Prices Rising?
The current gold rally is driven by a combination of global and local factors:
- Tariff Shock: President Trump’s announcement of sweeping tariffs, including a 145% duty on Chinese imports, has rattled global markets and sparked fears of a prolonged trade war. This uncertainty has made gold-traditionally viewed as a safe haven-more attractive to investors.
- Stock Market Volatility: The Indian and global stock markets have experienced wild swings, with investors seeking stability in gold.
- Inflation and Currency Risks: Concerns about inflation and a weaker dollar have further boosted gold’s appeal.
- Central Bank Buying: Strong purchases by central banks and increased investment in gold-backed ETFs have supported prices.
Gold and Silver Trends in 2025
- Since January 1, 2025, 24-carat gold has risen by over ₹19,000 per 10 grams, up from ₹76,162 at the start of the year to nearly ₹95,880 now.
- Silver has also gained, although it saw a correction on Monday. It has risen by ₹8,083 per kg since January, but remains volatile.
Market Outlook
Analysts expect gold to remain volatile but well-supported as long as global uncertainties persist and central banks maintain a cautious stance. With the ongoing tariff standoff and geopolitical risks, gold is likely to remain a preferred asset for risk-averse investors.
Gold’s sharp rise on May 5, 2025, highlights its enduring appeal as a safe haven during economic and political turbulence, while silver’s correction signals ongoing volatility in precious metals markets. Investors are advised to monitor global developments closely as market dynamics continue to shift.
