Gold prices in India continued on their record rally ahead of Maha Shivratri which will be celebrated across the country on Wednesday, February 26, 2025. Currently, the 24K gold price is at Rs 88,090 per 10 grams. While trading in MCX gold prices will be closed on Wednesday due to the market holiday, but demand for gold would be high due to the festivity. So far, in February 2025, gold prices in India have skyrocketed by more than 4%, while silver prices are up by 1.5%.
Gold Prices In India:
Ahead of Maha Shivratri, 24K gold price stood at Rs 88,090 per 10 grams, while 10 grams of 22K and 18k were at Rs 80,750 and Rs 66,070 respectively. Prices were up by Rs 16 to as high as Rs 2,200 on February 25.
In cities like Chennai, Mumbai, Hyderabad, Kerala, Kolkata, Bangalore, and Pune, 24K gold price stood at Rs 88,090 per 10 grams. However, in Delhi, gold price was expensive at Rs 88,240 per 10 grams, while in Ahmedabad and Vadodara, the price stood at Rs 88,140 per 10 grams in 24K.
Silver Prices In India:
Silver price continues to be above the Rs 1,00,000 mark. On February 25, 1 kg silver was at Rs 1,01,000, while 1 gram silver was at Rs 101. In cities like Chennai, Hyderabad and Kerala, silver was more expensive at Rs 1,08,000 per 1kg.
MCX Gold, Silver Prices:
MCX gold price stood at Rs 85,619 per 10 grams after trading hours on February 25. While MCX silver price was at Rs 93,889 per 1kg.
Spot Gold:
As per Trading Economics, gold fell to below $2,910 per ounce on Tuesday as investors booked profits following a record-breaking session. On Monday, bullion hit a fresh all-time high, driven by safe-haven demand amid concerns over U.S. trade policies. President Donald Trump reaffirmed that tariffs on Canadian and Mexican imports would proceed as planned, prompting markets to price in inflationary risks that could influence the Federal Reserve's monetary policy.
Additionally, gold received support from strong investor demand, with the SPDR Gold Trust, the world's largest gold-backed ETF, reporting an increase in holdings to 904.38 tonnes on Friday-the highest since August 2023. Meanwhile, investors will shift focus towards Friday's PCE report, the Fed's preferred inflation gauge. While the data is expected to show the slowest price growth since June, persistent inflationary pressures could keep the Fed cautious on rate cuts, the data added.
What Will Drive Gold Prices On February 26?
Apart from the festival Maha Shivratri, there are domestic and international factors that will play a major role in driving gold prices.
Kaynat Chainwala, AVP - Commodity Research said, investment demand remains robust, with World Gold Council (WGC) data showing a significant 48-tonne inflow, valued at $4.6 billion, into North American gold-backed ETFs last week, the largest weekly increase since April. Additionally, SPDR Gold holdings rose to 904.38 tonnes, the highest since August 2023. Today, gold dipped slightly to around $2,953 per ounce, though a sharp decline seems unlikely, as concerns over Trump's tariff proposals and Russia's largest-ever drone attack on Ukraine are likely to keep global risk appetite restrained. Meanwhile, U.S. consumer sentiment dropped to a 15-month low, and long-term inflation expectations reached a 30-year high amid growing fears that President Donald Trump's broad tariffs could worsen inflation, highlighting a weak economic outlook and fueling expectations for another rate cut as early as July.
Also, ateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, market participants are now focused on the upcoming PCE Price Index, which could act as the next major trigger, alongside ongoing developments in Trump's tariff policies.
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