Bullion Update

The Reserve Bank of India has fixed the redemption price for the latest tranche of Sovereign Gold Bonds (SGBs) at Rs 12,801 per unit, marking one of the highest payout values since the scheme’s inception. The updated price reflects a sustained rise in global gold benchmarks, driven by market volatility, elevated geopolitical risks, and persistent investor demand for safe-haven assets. As the price aligns with the simple average of the closing rates published by the India Bullion and Jewellers Association, investors are set to receive substantial returns upon maturity.

Gold and silver prices retreated after a strong multi-session rally, as investors opted to book profits amid shifting global cues and a cautious trading environment. The pullback comes after both precious metals recently touched multi-week highs, supported earlier by softer U.S. yields, geopolitical uncertainty, and expectations of monetary easing. While the broader outlook for bullion remains constructive, traders temporarily stepped back to reassess valuations and await key economic data scheduled later this week.

Gold prices in India have experienced a decline, reflecting subdued global market cues and muted investor sentiment. The yellow metal, traditionally considered a hedge against inflation and economic uncertainty, is facing pressure from strengthening dollar indices, weak demand from key consuming nations, and softer international commodity trends. Analysts suggest that the downward movement may be temporary, with geopolitical tensions, inflationary concerns, and central bank policies likely to influence prices in the near term.

Gold prices in Delhi and across India surged sharply, reaching their highest levels in nearly two weeks, as the yellow metal gained momentum globally. A weakening U.S. dollar, expectations of a forthcoming interest-rate cut by the Federal Reserve and heightened safe-haven demand helped drive the rally. In Delhi, 24-carat gold recently traded at ₹12,806 per gram, while 22-carat stood at ₹11,740 per gram.

Gold futures traded in a narrow but turbulent band on Thursday, reacting to stronger-than-expected US economic data and firm commentary from Federal Reserve officials. December gold contracts on the Multi Commodity Exchange (MCX) edged up by Rs. 59, or 0.05 %, to Rs. 1,20,581 per 10 grams, reflecting cautious optimism among investors. Meanwhile, silver futures gained marginally by Rs. 103 to Rs. 1,47,424 per kilogram.

Gold and silver prices witnessed a sharp surge in domestic markets, with gold jumping nearly 1% and silver climbing over 2% on the Multi Commodity Exchange (MCX). This rally follows a series of global cues, including geopolitical tensions, softening U.S. Treasury yields, and expectations of interest rate cuts by major central banks. As investors seek safety amid market uncertainty, precious metals have regained momentum after a brief period of correction.

The Securities and Exchange Board of India (SEBI) has issued a fresh warning to investors about trading in digital gold, highlighting the risks associated with unregulated platforms. While digital gold has gained immense popularity for its convenience and affordability, SEBI’s caution underscores the absence of a clear legal framework governing such products. In contrast, Gold Exchange-Traded Funds (ETFs)—which operate under SEBI’s regulatory ambit—offer enhanced safety, transparency, and liquidity.

Gold prices reached unprecedented levels, trading at Rs 1.31 lakh per 10 grams in India and USD 4,200 per ounce internationally, reflecting a combination of global economic uncertainty, currency fluctuations, and sustained investor demand for safe-haven assets. Analysts attribute the rally to factors including rising inflation, geopolitical tensions, and persistent volatility in equity markets. This record surge underscores gold’s enduring appeal as a wealth-preservation tool and portfolio hedge.

Gold prices soared to an all-time high as investors bet on an imminent interest rate cut by the U.S. Federal Reserve. The rally reflects heightened optimism that a shift toward monetary easing could weaken the dollar and enhance demand for safe-haven assets. With global economic uncertainty persisting and inflation showing signs of stabilization, bullion markets have gained renewed traction.

Despite the cultural association of Diwali with gold buying, 2025 has seen a muted response in India’s retail bullion markets. Weak consumer sentiment, global price volatility, and cautious investor behavior have contributed to a subdued festive season, challenging jewelers and bullion traders. However, behind the apparent gloom, institutional and high-net-worth activity in bullion trading, storage, and arbitrage remains active, suggesting that wealth-driven demand continues quietly.