Gold prices surge to record high in Odisha, yellow metal nears Rs 90,000 mark per 10 gm

Gold prices in Odisha soared to record highs this week, with 24-carat gold hitting Rs 87,930 per 10 grams in Bhubaneswar on Tuesday amid market buzz suggesting that it may breach the Rs 90,000 mark soon.

Prices in the state capital for 22-carat gold rose to Rs 80,600 per 10 grams, marking sharp daily jumps of Rs 870. Similarly. the price of 24-carat gold increased by Rs 800. Furthermore, silver prices also surged to Rs 95,337 per kilogram causing severe distress to potential buyers amid the wedding season.

The spike in Odisha followed national trends, which in itself was jolted by current international trends after US President Donald Trump announced 25 per cent tariffs on steel and aluminium imports in his country, following which gold prices hit a record 2,900 US dollars per ounce (28.35 grams).

24-carat gold prices hit Rs 93,666 in Delhi this morning whereas prices for 22-carat gold in the national capital hovered at Rs 85, 860. The daily trend remained largely the same across all the metro cities in India, except for Pune, where prices for the yellow metal were Rs 80,963 and Rs 88, 324 for 22 and 24-carat, respectively.

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Meanwhile, the depreciation of the Indian rupee, currently at Rs 87.43 per US dollar, has made gold imports more expensive.

Why Gold Prices are Rising in India

Gold remains a crucial part of investment portfolios, offering safety and wealth preservation amidst inflation and geopolitical risks. However, several factors including tariff restrictions by US President Donald Trump, have contributed to this surge:

Trade War Fears: US President Donald Trump's tariffs on metal imports have created market uncertainty, prompting investors to turn to gold as a safe-haven asset.

Geopolitical Tensions: Middle East tensions and Trump's Gaza plan have heightened market anxieties, boosting gold prices.

China's Central Bank: Increased gold reserves by China's central bank have added upward pressure on the yellow metal's value.

Inflation Concerns: Linked to Trump's policies, inflation worries make gold an attractive investment. The US Federal Reserve may not cut rates soon.

Gold Demand in 2025: Tariff threats have led investors to move from equities to safer assets like gold.

Emotional Value: The fear of missing out (FOMO) drives people to buy gold when prices rise, creating a cycle of demand and price increases.