Gold prices in India surged further on June 14, crossing ₹74,500 per sovereign, as investors appear to be rushing towards safer assets amidst worsening global tension.
The rate for 24-carat gold touched ₹9,320 per gram, up ₹25 from the previous day. That brings the price of a sovereign (8 grams) to ₹74,560 — another step closer to the ₹75,000 mark that some jewellers fear may not be far off if the trend continues.
18-carat gold, commonly used for lightweight jewellery, also saw a hike of ₹20 per gram, trading at ₹7,645.
The biggest trigger seems to be the renewed anxiety over conflict in the Middle East. The situation between Israel and Iran has flared up once more, with speculation swirling around potential retaliations.
US President Donald Trump has publicly supported Israel, which many observers believe may provoke a sharper response from Iran. Iran’s Supreme Leader Ayatollah Khamenei has already hinted at a strong counter-move. While nothing is certain, the growing unease appears to have pushed global investors into gold.
Closer home, the weakening of the Indian rupee against the US dollar has made importing gold even more expensive. Since India imports most of its gold, any dip in rupee value directly bumps up the domestic price.
In the global market, gold rose by $54 per ounce (a 1.6% increase) and is now trading at $3,433. The record stands at $3,500, set back in April. If geopolitical tensions continue to escalate, that record might be up for challenge.
While ₹74,560 is the base market rate for a sovereign, don’t be surprised if jewellers ask for upwards of ₹80,000. Once you add 5% or more in making charges, along with GST and hallmarking fees, the price of an ornament can easily go beyond ₹80,690.
And that’s just for basic designs. Custom patterns or intricate craftsmanship could nudge the price even higher. Shoppers are being advised to check pricing breakdowns and compare across stores before making a purchase.
