Gold is always considered a haven and a good asset class for hedging. Financial experts suggest investing in it when in doubt or fear — be it of market crashes, volatility, recession, inflation, or hyperinflation. For this reason, not just individuals, even institutional players and countries at large invest in gold.

As per the World Gold Council (WGC) Q4 2025 data, India’s gold reserves are at 876.18 metric tonnes, and the Reserve Bank of India (RBI) was the second-highest central bank, after Poland, to purchase gold. India added 72.6 tonnes of gold to its kitty in 2024, raising its gold reserves bar by 9%, thereby putting India in the top 10 countries with the largest gold reserves.

The price of the yellow metal surpassed $3,500-an ounce and was an all-time high on April 22, 2025, owing to geopolitical tensions triggered by U.S. President Donald Trump’s tariff hikes. This is not a one-off moment when gold prices have reacted to the twists and turns in the global geopolitical landscape. History is replete with instances of gold buying frenzies despite the sticker shock. As per the WGC, around 2,16,265 tonnes of gold have been mined throughout history. So why this gold rush, and what determines gold’s price?

Is gold an investment vehicle?

From the lens of investment, gold is not a ‘productive’ asset, insofar as regular cash flows. For informed investors, it might remain enigmatic as to why people buy gold when prices are on a tear, despite its ‘unproductiveness.’

In India, factors such as import duties, tax rates, local demand and supply, strength or weakness of Rupee are also taken into account before the final price is fixed.
| Photo Credit:
Vaishali R Venkat

Say for instance, investment in equity offers you part-ownership in a company and access to cash flows, in the form of dividends, in proportion to the number of shares you have purchased. On top of it, when the company grows, it gets reflected in the current market price. Likewise, you gain interest income for bonds, fixed/recurring deposits. Investing in a property gives you a rental income. But, gold doesn’t beget cash flows, and comes with the hassle of maintenance cost and safety concerns.

Hedge against uncertainty

But financial experts view gold as a tool for hedging, rather than a mode of investment. When a storm of uncertainty unleashes, the anchor of gold keeps you afloat. Gold is used as a hedge not just against hyperinflation or market volatility, but also against extreme uncertainties.

It’s an axiomatic historical truth that during the toughest times of India-Pakistan Partition in 1947, millions of people were displaced, and those who carried gold heirlooms felt more secure financially. Gold is easily portable, cashable, and globally accepted, even though it is not considered a currency now.

What determines the gold price?

Fixing a price for the yellow metal is not a no-brainer. Multiple factors in the global arena – demand and supply, economic conditions, geopolitical tensions, inflation, the U.S. Fed interest rates, currency fluctuations, Rupee-dollar equation, strength of the U.S. dollar, central bank policies, buying and selling of gold reserves by countries – play a vital role in arriving at the value of gold. On the supply side, gold mining, recycling, exploration cost also impact its price.

In India, factors such as import duties, tax rates, local demand and supply, strength or weakness of Rupee are also taken into account before the final price is fixed. Seasonal trends, such as festivals, weddings or auspicious days, such as Askhaya Tritiya, also boost demand and impacting its price.

Who determines the gold price?

The London Bullion Market Association (LBMA) fixes the gold price as the benchmark for the global gold market. At the LBMA, gold prices are released twice every day – at 10:30 a.m. (GMT) and 3 p.m. (GMT). LBMA says, “Prices are set in U.S. dollars per troy ounce [approximately 31 grams]. Euro and Sterling prices are indicative and for settlement only.”

In India, the India Bullion and Jewellers Association Limited (IBJA) publishes gold and silver rates twice daily – at 12 noon and 5 p.m. The gold price is not released on weekends and during public holidays. It releases rates for various gold purity – Gold 999, Gold 995, Gold 916, Gold 750, Gold 585, and Silver 999. Though gold purchase of all forms attracts a GST of 3%, rates released by IBJA does not include GST, other taxes and making charges.

(The writer is an NISM & CRISIL-certified wealth manager)

Gold rate today on Akshaya Tritiya 2025: Gold June futures at MCX saw profit-taking on Akshaya Tritiya, commencing at Rs 95,208/10 grams, showing a decline of 0.4% or Rs 384. Additionally, silver July futures began trading at Rs 97,292/kg, down by Rs 826 or 0.84%.
The initial four months of 2025 have demonstrated exceptional performance for gold investments, with prices increasing approximately 25% during this period.
Akshaya Tritiya attracts numerous investors to purchase gold, as it is regarded as a favourable day for acquiring precious metals as a representation of prosperity and financial stability. Investors who put their money in gold last Akshaya Tritiya have realised significant gains exceeding 31%, according to Deveya Gaglani, Senior Research Analyst- Commodities, Axis Securities quoted by ET.
Also Check | Gold rate prediction on Akshaya Tritiya: Where are gold prices headed on April 30, 2025 and in the near-term?
On Tuesday, precious metals showed varied results in domestic and international trading. Gold June futures finished at Rs 95,592 per 10 grams, declining by 0.45%, whilst silver July futures concluded at Rs 98,118 per kilogram, advancing by 0.42%.
Tuesday’s trading saw gold and silver moving within a range, concluding differently following reports of U.S. trade negotiations with various nations. U.S. stock markets showed slight improvements, whilst economic indicators presented mixed results.
“The U.S. consumer confidence fell amid inflation fears and higher U.S. trade tariffs and unable to support gold prices. Silver showed some bargain buying amid hopes of US-China trade negotiations,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Market participants are waiting for the U.S. GDP and corporate earnings numbers for more clarity on the economic activities. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the key U.S. economic data; gold prices could hold its support level of $3,200 per troy ounce and silver prices could also hold $31.40 per troy ounce levels on a weekly closing basis,” he added.
The US Dollar Index, DXY, currently trades near 99.30, showing an increase of 0.06 or 0.06%.
At MCX, Manoj Kumar Jain sees gold’s support levels at Rs 95,000-94,400 and resistance at Rs 96,040-96,650. For silver, he identifies support at Rs 97,400-96,650 and resistance at Rs 97,400-96,650.
For trading silver, Jain recommends purchasing during dips near Rs 97,400-97,000, setting a stop loss at Rs 96,350, targeting Rs 98,500-99,200.
Also Read | India has the world’s 7th highest gold reserves! Why is RBI buying gold and how does it help the Indian economy?
Deveya Gaglani advises staggered gold purchases during 5-10% price corrections, noting current elevated prices near overbought zones.
“Currently, the risk-reward ratio is unfavourable at these record levels. In a bullish scenario, if prices hold above Rs 100,000, they could reach Rs 110,000 by the next Akshaya Tritiya,” he said.
He anticipates price consolidation around Rs 87,000 on the downside.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)

The rupee depreciated 19 paise to 85.15 against the U.S. dollar in early trade, driven by renewed geopolitical tensions and increased demand for the U.S. dollar. File
| Photo Credit: Reuters

The rupee depreciated 19 paise to 85.15 against the U.S. dollar in early trade on Wednesday (April 30, 2025), driven by renewed geopolitical tensions and increased demand for the U.S. dollar, which together exerted pressure on the local unit.

Forex traders said geopolitical tensions between India and Pakistan have sparked risk-off sentiment in the market leading to the rupee weakness.

However, foreign fund inflows and crude oil prices cushioned the downside for the domestic unit.

At the interbank foreign exchange, the domestic unit opened at 85.15 against the greenback, registering a fall of 19 paise over its previous close.

On Tuesday (April 29, 2025), the rupee gained 27 paise to settle at 84.96 against the U.S. dollar.

“Looking ahead, the rupee is expected to find immediate support in the 84.90–85.00 range, with a slight upward bias, moving towards the 85.80–86.00 levels in the near term,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, amid rising tensions between India and Pakistan, the U.S. has called on both countries “not to escalate” the conflict. Secretary of State Marco Rubio will speak to Foreign Ministers of both countries.”

U.S. State Department Spokesperson Tammy Bruce at a press briefing on Tuesday (April 29, 2025) said that Washington is reaching out to both India and Pakistan “regarding the Kashmir situation” and telling “them not to escalate the situation.”

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.11% at 99.34.

Brent crude, the global oil benchmark, fell 1.11% to $63.54 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 165.90 points or 0.21% to 80,454.28, while the Nifty rose 51.30 points or 0.21% to 24,387.25.

Foreign institutional investors (FIIs) bought equities worth ₹2,385.61 crore on a net basis on Tuesday (April 29, 2025), according to exchange data.

Meanwhile, India and the US are exploring opportunities for an interim trade arrangement in goods to secure an “early mutual win” ahead of finalising the first phase of the proposed bilateral trade agreement by the fall of this year.

The Commerce Ministry said on Tuesday (April 29, 2025) that both countries have initiated sectoral-level talks and more engagements are planned from May-end.

On the domestic macroeconomic front, a finance ministry report on Tuesday (April 29, 2025) said with the right strategies in place, continued domestic reforms, and a strong focus on infrastructure development and job creation, the economy can demonstrate resilient growth despite global uncertainties.