Thiruvananthapuram: Gold prices in India recorded a sharp and unprecedented rise on Thursday, with the price of one pavan (sovereign) climbing by ₹8,640 to reach ₹1,31,160, according to market data reported by media sources. The rate per gram of 24-carat gold also surged by ₹1,080, settling at ₹16,395. This significant uptick reflects intense buying activity in both domestic and global bullion markets.
On India’s commodities exchange MCX, gold futures mirrored this upward momentum, jumping by nearly ₹9,954, which brings the price of 10 grams of gold to ₹1,75,869. At the same time, global spot gold prices climbed to approximately $5,591 per troy ounce, showing a strong weekly gain of more than 10%. Silver too saw similar gains alongside gold’s ascent, indicating broad strength across precious metals.
Analysts point to persistent global economic and geopolitical uncertainties as key drivers behind the rally. A weaker US dollar trading at multi-year lows has heightened gold’s appeal as a hedge against currency volatility and inflation. Market jitters over international conflicts, especially tensions in the Middle East and Ukraine region, have further amplified demand for safe-haven assets like gold and silver.
The World Gold Council’s recent data shows that global gold demand hit a record high in 2025, driven primarily by investors seeking stability amid economic stress. Investment inflows into gold-backed exchange-traded funds (ETFs) surged, while traditional jewellery demand softened due to elevated prices; still, the overall appetite for gold remained robust.
Market watchers say that while the dramatic price rise benefits holders of gold and bullion investors, retail buyers and jewellery consumers may face affordability challenges. Prices touching near record levels could temper demand among ordinary buyers in the short term, even as investment demand retains its strength.
This sharp ascent underscores gold’s continuing role as a preferred safe-haven asset in times of financial stress, particularly when global markets are unsettled, and currency valuations fluctuate significantly.