Gold Price: The additional 25 percent tariff imposed on India by US President Donald Trump has become effective from Wednesday 27 August 2025 today. Meanwhile, gold prices have increased in the domestic market. Gold October 3 Contracts on MCX are selling 0.44 percent to Rs 1,01,070. Whereas, silver September 5 Contracts on MCX are available at the rate of Rs 1,15,774 per kg.
The price of gold has increased by about 1200 percent in the last 20 years. That is, in 2005, gold was trading at a price of Rs 7,638 per 10 grams, which jumped 1200 percent and crossed Rs 1 lakh in June 2025.
31 percent return on annual basis
The price of gold has risen about 31 percent every year. Gold has given more returns than shares and other investment in 2025. Whereas, the price of silver is stable by reaching beyond one lakh rupees. It has given a return of 668.84 percent during the last 20 years i.e. from 2005 to 2025.
According to the Indian bullion, 24 carat gold is being sold in the country at the rate of Rs 1,01,270 per 10 grams. Whereas, 22 carat gold is trading at a price of Rs 92,831.
Fresh sense of your cities
In Delhi, 24 carat gold is being sold on Indian bullion at Rs 1,00,910, while in Mumbai, Rs 1,01,090, Rs 1,00,950 in Kolkata, Rs 1,01,170 in Bengaluru, Rs 1,01,250 in Hyderabad and Rs 1,01,380 in Chennai.
Regarding the price of gold, experts believe that if the global movement is fast, then its glow can become faster in the coming days. However, if there is a decrease in geopolitical stress, then investors can consider investment in other things as better instead of sleeping.
How is the rate fixed?
Gold and silver prices are fixed on daily basis and many factors are responsible behind it. These mainly include the following causes. Since the prices of gold and silver in the international market are fixed in the US dollars, the change in the dollar-rupaya exchange rate has a direct impact on the price of these metals. If the price of the dollar increases or the rupee is weak, then the prices of gold in India increase.
Most of the gold is imported in India. In such a situation, import duty, GST and other local tax affect gold prices.
In the global market, the upheaval (eg war, economic recession or change in interest rates) directly affects the price of gold. When uncertainty in the global market increases, investors choose safe options such as gold instead of shares or other unstable assets. In India, gold is not only related to investment, but also with tradition and cultural beliefs. Buying gold on marriage, festivals and auspicious occasions is considered auspicious. Therefore, demand is high, which affects prices.
Sona has been a better return option than inflation for a long time. When inflation increases or there is a risk in the stock market, people like to invest in gold. This is the reason that its demand and price always remains.

