The price of gold has risen dramatically over the past two to three years; it is currently trading at $3,200 on the global market, up 77% from its most recent low of $1,820 in November 2022. In just one month, gold prices in India have dropped by about 7%, with an all-time high of Rs 1 lakh set on April 22. Indian families typically prefer 22-carat gold for wedding jewelry, with 18-carat gold being less popular among these customers. This is just one of the factors driving the recent gold boom.
Rising gold prices have an effect on consumers’ purchasing decisions, making them think about 18-carat gold rather than 22-carat gold.Because 18-carat gold is less expensive than 22-carat gold, it appeals to consumers at lower price points. In India, ten grams of 18-carat gold costs Rs 15,000 more than 22-carat gold.
A lot of gold customers are waiting for gold prices to drop further, in addition to switching to 18-carat gold jewelry. Because of these factors, gold has dropped 10% from its peak on global markets. Gold continues to struggle, and as the market adopts a wait-and-see attitude as the immediate response to the U.S. credit rating wanes, and there is some optimism that Ukraine and Russia will achieve a truce, prices may fall this week.
Gold prices are declining due to the global economic unpredictability, which includes the lowered US credit rating, significant fiscal deficits, rising interest rates, and a three-month peak in the 10-year yield. Despite the possible impact of tariffs on inflation, US Fed Chief Powell is still hawkish and unwilling to lower rates. With sporadic dips and corrections, gold’s performance in 2025 is anticipated to stay positive despite geopolitical and economic worries.
