Gold prices continued their upward march on Wednesday, supported by strong global demand for safe-haven assets and persistent geopolitical uncertainties. On the MCX, gold futures climbed to around ₹1,44,250 per 10 grams, while silver futures strengthened further to nearly ₹2,25,860 per kilogram.
While retail gold prices remained largely stable across major Indian cities, futures contracts on the Multi Commodity Exchange (MCX) traded higher, reflecting positive sentiment in the bullion market. The gains were driven by a combination of international market trends, a softer US dollar and heightened demand from investors seeking protection against global economic and geopolitical risks.
Gold prices remained firm across major Indian cities on 22 July, with 24-carat gold ranging between ₹1,41,260 and ₹1,44,500 per 10 grams. Chennai recorded the highest 24-carat gold price at ₹1,45,400, followed by Hyderabad (₹1,45,210), Bengaluru (₹1,44,980), Kolkata (₹1,44,670) and New Delhi (₹1,44,610), while Mumbai reported the lowest at ₹1,41,260. Prices of 22-carat gold ranged from ₹1,29,323 to ₹1,33,283 per 10 grams, with Chennai also topping this category.
Silver prices also stayed elevated, with 999 fine silver trading between ₹2,19,100 and ₹2,27,100 per kg across the country. Chennai registered the highest silver price at ₹2,27,100 per kg, followed by Hyderabad (₹2,26,800), Mumbai (₹2,26,530), Kolkata (₹2,26,050) and New Delhi (₹2,25,960). Bengaluru recorded the lowest silver rate at ₹2,19,100 per kg, reflecting minor regional variations in bullion prices.
Silver prices also remained firm in the retail market, mirroring gains in futures trading. Jewellers said demand for silver continues to improve from both industrial buyers and retail investors, particularly amid expectations of sustained strength in global precious metals prices.
Market experts attributed the latest rally in gold prices to ongoing geopolitical tensions in the Middle East and uncertainty surrounding the global economy. Investors typically turn to gold during periods of heightened risk, considering the yellow metal a reliable store of value.
Another factor supporting bullion prices is the growing expectation that major central banks could adopt a more accommodative monetary policy if economic growth slows further. Lower interest rates generally make non-interest-bearing assets such as gold more attractive, boosting investment demand.
The weakening of the US dollar against a basket of major currencies also supported international gold prices. Since gold is priced globally in dollars, a softer greenback makes the precious metal more affordable for overseas buyers, often lifting overall demand.
Analysts noted that the Indian bullion market is also benefiting from seasonal buying interest. Although the festive season is still a few months away, jewellers are witnessing steady enquiries from consumers planning purchases ahead of upcoming festivals and the wedding season.
However, high prices have prompted many buyers to limit purchases to essential jewellery or lightweight ornaments. Jewellers say customers are increasingly opting for exchange schemes, gold savings plans and digital gold investments instead of making large one-time purchases.
Investment demand has also remained healthy. Financial advisers believe gold continues to play an important role in portfolio diversification, especially during periods of market volatility. They recommend maintaining a balanced allocation to gold as part of a long-term investment strategy rather than chasing short-term price movements.
Silver, meanwhile, has been outperforming in recent weeks due to its dual appeal as both an investment asset and an industrial metal. Demand from sectors such as electronics, solar energy and electric vehicles has supported the metal even as investors continue to view it as an alternative safe-haven asset.
Looking ahead, bullion traders will closely monitor global economic data, movements in the US dollar, crude oil prices and geopolitical developments for further direction. Any fresh escalation in global tensions or indications of interest rate cuts by major central banks could provide additional support to gold and silver prices.
For Indian consumers, experts advise comparing prices across jewellers, checking hallmark certification and considering making purchases based on financial goals rather than short-term market fluctuations. With gold and silver continuing to trade near record highs, the precious metals are expected to remain in focus among investors and jewellery buyers alike in the coming weeks.
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