Global Economy & Geopolitics – The Hidden Drivers of India’s Gold Prices in 2025
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September 17, 2025Gold and Silver Prices in India 2025: Tariffs, Record Highs and Festive Demand
Introduction
2025 has turned out to be a landmark year for the bullion industry. Both gold price in India today 2025 and silver price in India have surged to historic levels, driven by a mix of global economic uncertainty, U.S. trade policies, and strong cultural demand ahead of the festive season.
From gold price per 10 grams in India rising to above 1,08,600 to silver price per kg in India touching 1.26 lakh, the bullion market is buzzing with activity. At the same time, tariff updates on gold and jewellery from the U.S. and rising premiums in India have added volatility. For Indian investors, jewellers, and exporters, these changes are more than just headlines they directly affect buying decisions, investments, and business strategies.
Gold at Record Highs:
Why Prices Are Surging Globally, gold prices in 2025 breached the $3531.10 per ounce mark, their highest ever. This rally is being fuelled by: -
- U.S. Federal Reserve policy expectations: Markets are betting on a rate cut.
- A weakening U.S. dollar, making gold more attractive for global investors.
- Political pressure on the Federal Reserve in the U.S., raising doubts about its independence.
- Geopolitical tensions and inflationary risks, reinforcing gold’s role as a safe-haven asset.
For India, this translates into a record-high gold price per 10 grams, above ₹1,06,700. Families planning jewellery purchases are facing higher costs, while long-term investors who bought earlier are seeing strong returns.
Silver’s Strong Run: Beyond Just an Investment Metal
Silver price in India today 2025 has quietly become one of the year’s strongest stories. Globally, silver climbed to $40 per ounce, and in India, it touched ₹1.19 lakh per kg.
Unlike gold, silver benefits from a dual demand story: -
- Safe-haven buying, as investors look for affordable alternatives to gold.
- Industrial usage, especially in clean energy technologies such as solar panels and electric vehicles.
This dual demand is why silver investment in India 2025 has been booming, offering both growth and security.
Tariff Turmoil: How U.S. Policies Shook the Bullion Market
In August 2025, the bullion industry faced unexpected turbulence when U.S. Customs classified 1kg and 100-ounce gold bars as tariffable, with duties as high as 39%.
The result?
- Disruptions in gold imports from Swiss refiners.
- A gap between New York futures and London spot gold prices, causing premiums to spike.
- Panic in the global bullion market that affected Indian traders too.
Just days later, President Trump reversed the decision, declaring that “Gold will not be tariffed.” While this restored calm, it proved how gold tariffs news 2025 has the power to directly influence gold price in India through import costs.
U.S.–India Trade Tensions: Jewellery Exports Under Pressure
On August 27, 2025, the U.S. doubled tariffs on Indian goods to 50%, covering gems and jewellery.
Impact in India:
- Jewellery export orders cancelled from U.S. buyers.
- Layoffs in diamond and jewellery hubs like Surat and Amritsar.
- Rising concerns for exporters already squeezed by high gold and silver prices in India.
This has put pressure on the Indian jewellery industry, making domestic festive gold demand in India even more critical to support sales.
Festive Demand Keeps India’s Bullion Market Alive
Despite global volatility, festive season gold demand in India 2025 remains strong. With Navratri, Dussehra, and Diwali around the corner, jewellers are stocking up even at higher prices.
Local dealers are charging premiums up to $4 per ounce over global spot rates. This reflects how bullion market news India is shaped by tradition—where buying gold and silver is not just an investment, but also a symbol of prosperity and culture.
What This Means for Indian Investors and Businesses
- For jewellery buyers: High gold price per 10 grams in India makes purchases expensive, but festive buying remains essential.
- For investors: Both gold and silver continue to be strong hedges. For many, the debate is gold vs silver investment India 2025 with silver offering growth and gold offering stability.
- For jewellers and traders: Rising costs and tariffs squeeze margins, but festive gold demand India offers a safety net.
- For exporters: U.S. tariffs on Indian jewellery 2025 are a major challenge. Exploring new export markets will be crucial.
Conclusion
The bullion industry in 2025 is shaped by a mix of record-high gold and silver prices, tariff-driven volatility, and resilient Indian festive demand.
For Indian buyers, the cultural and financial value of gold and silver remains unshaken. For investors, bullion continues to be one of the safest long-term assets. And for jewellers, adapting to policy shocks while leveraging festive gold and silver demand in India will be the key to success.
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Sources
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The Guardian – Gold price hits record highs amid Fed concerns and political pressure
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New York Post – Gold smashes $3,500 record as policy turmoil fuels haven rush
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Times of India – U.S. tariff hike hits Indian diamond and jewellery traders
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Reuters – Indian jewellers stock up for festive season despite high prices
Stay Updated with Shree Ambica Touch
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