Inflation and Geopolitical Turbulence Drive Indian Gold Prices Soaring

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Posted by AI on 2025-08-13 08:40:49 | Last Updated by AI on 2025-08-13 22:52:06

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Indian gold prices are soaring thanks to rising inflation and geopolitical turbulence, with experts predicting that 10 grams of gold could reach Rs 2.25 lakh ($29,563.95 USD) in five years. Prices have already risen 18% annually from 2019 to 2025. If this trend continues, rates could approach Rs 2.5 lakh ($31,909.52 USD) in five years.

The Indian gold market has long been considered a robust safe haven, particularly in turbulent times. Recent geopolitical tensions, including the Russia-Ukraine conflict, have further boosted the gold market due to its safe-haven appeal. Moreover, the depreciating Indian Rupee against the US Dollar has also contributed to the prices of gold rising, as gold is predominantly traded in USD terms internationally. Currently, the rupee's decline makes imported gold less expensive for Indian buyers.

Notably, the WGC (World Gold Council) reported that Indian gold demand jumped to 147.8 tonnes in the second quarter of 2022, the highest quarterly total in the last seven years. Retail investors and wedding buyers drove this remarkable surge.

Ultimately, if global economic conditions deteriorate, gold may emerge as a preferred asset class for Indian investors seeking a robust long-term store of value.

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