Gold prices will drop to record low or increase further? Know ahead of marriage season

Global gold prices have soared to historic levels, creating uncertainty for buyers ahead of India’s peak wedding season. Benchmark prices surged to USD 3,150 per troy ounce this week while domestic rates in India hit an all-time high of Rs 90,797 per 10 grams on April 1.

While analysts link the rally to escalating US-China trade tensions, Middle East geopolitical risks, and rising safe-haven demand amid volatile equity markets, the situation has left the busy wedding scenes in India in a lurch.

Trade Wars and Geopolitical Risks Drive Rally

Fears of new US tariffs and worsening Russia- Ukraine tensions have pushed investors toward gold. Analysts have noted that global market instability and geopolitical risks are boosting precious metals.

While silver prices also remained volatile, holding above Rs 1 lakh per kilogram, predictions are for gold to breach Rs 91,400 and silver Rs 1,01,650 this week, though US tariff deadlines may trigger further fluctuations.

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Consumers Grapple with Soaring Costs

In India, the world’s second-largest gold consumer, wedding-related jewellery demand has plummeted by 70-80%, according to the India Bullion and Jewellers Association.

Families are struggling to afford traditional purchases, with 22-carat gold hitting Rs 8,447 per gram and domestic prices rising 21% in 2024 and another 10% in 2025.

Wedding Season Challenges

Gold is a cornerstone of Indian weddings, but soaring prices are forcing families to cut back. Many jewellers nationwide have reported a sharp decline in sales, with 24-carat gold ornaments now costing Rs 75,000–Rs 80,000 per sovereign after taxes and making charges, according to media reports.

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Final Analysis

While brief price corrections are possible, sustained global tensions and safe-haven demand may push gold higher. For now, India’s wedding season faces a costly hurdle, with families and traders hoping for relief.

(Disclaimer: The news is based on the current market research. Investors and buyers are requested to assess local market conditions before deciding their move.)