Gold continued to rise on August 3, 2025, with prices hitting record levels in India. In big cities such as Delhi, 24-karat gold is retailing at ₹1,01,500 per 10 grams, while 22-karat gold is at ₹93,050 for 10 grams. The majority of metro cities, including Mumbai, Chennai, and Kolkata, are roughly around the same rates, from ₹1,01,350 to ₹1,01,500 for 24-karat gold. Silver, also, is steady at ₹1,13,000 per kilogram. The last week has witnessed gold going up by ₹1,420 per 10 grams, indicating the sustained demand in the background of economic and geopolitical uncertainty.
What is the Gold high on?
There are multiple factors propelling gold prices to record levels:
- Geopolitical Tensions: The persisting uncertainty originating in areas such as Ukraine and evolving global alignments has prompted investors to find shelter in safe-haven assets such as gold.
- Global Economic Policy: Ongoing fears about trade wars—most notably recent tariffs from large economies—coupled with interest rate reductions by the US Federal Reserve, have fuelled demand for gold as a hedge.
- Central Bank Buying: Central banks, especially from emerging economies, have increased gold buying as part of their foreign reserve approach, further fuelling demand.
Expert opinion: Invest or wait?
Beyond the glitz, however, experts caution and invest wisely:
- Portfolio Allocation : Virtually all financial planners suggest that gold comprise at best 5–15% of an investor’s portfolio. The allocation diversifies risk but steers clear of excessive exposure in a market vulnerable to steep corrections.
- Wait for Dips : Given gold’s magnificent 35% gain in 2025 to date, experts at several top-performing mutual funds and brokerages feel the metal can be overdue for a short-term 12–15% correction in dollar terms. They recommend waiting for possible pullbacks before buying in earnest.
- Preferred Methods of Investment : For the majority of investors, gold ETFs and gold mutual funds are the most preferred forms of investment. These provide liquidity, lower fees, and regulatory safety compared to physical gold that has making charges and security threats. Buy physical gold only if for personal consumption, not exclusive investment.
- Safe Haven, Not Growth Engine : Experts point out that gold is intended as a “defence asset” to protect portfolios in times of uncertainty, and not your investment priority. Keeping growth potential intact implies not going above a combined 20% in gold and debt instruments.
The Road Ahead
Even though Goldman Sachs and J.P. Morgan estimate that gold could reach $3,100–$4,000 an ounce by the year 2025, strategists warn that the historic surge might lose its steam, particularly if economic conditions level out or interest rates increase again. For investors, it is all about moderation, robust diversification, and resorting to digital investment channels for convenience and safety.
In short, gold is still a solid store of value in times of mayhem, but intelligent investors should not use it as a main driver of portfolio growth but more as a stabiliser.
