Gold prices are on the rise in India on December 25, 2025, driven by a combination of global demand, inflationary pressures, and geopolitical tensions. This Christmas morning, the yellow metal is trading higher, with 24K gold priced at Rs 13,894 per gram, 22K gold at Rs 12,736 per gram, and 18K gold at Rs 10,421 per gram. Silver is also trading higher at Rs 234 per gram.

Factors Influencing Gold Prices

Several factors are contributing to the rise in gold prices. These include:

• Global Demand: Increased global demand for gold is a primary driver of the price increase.
• Inflationary Pressures: Gold is often seen as a safe-haven asset during times of inflation, as it tends to hold its value better than traditional currencies.
• Geopolitical Tensions: Rising geopolitical tensions also contribute to the demand for gold as investors seek safe assets during uncertain times. Tensions between the U.S. and Venezuela, for example, have increased geopolitical risks across commodity markets.
• US Federal Reserve Policies: Anticipation of further monetary easing by the United States Federal Reserve also influences gold prices. The Federal Reserve's recent rate cut and signals for further easing next year have weakened the dollar, boosting global safe-haven demand.
• Rupee Value: A weak rupee makes imported gold expensive, so any currency fluctuation directly affects the local gold rate.

City-Wise Gold Rates

Gold rates vary slightly across major cities due to labor charges, demand, and local taxes. Here's a snapshot of gold prices in some major Indian cities on December 25, 2025:

• Delhi: 24K gold is priced at Rs 13,908 per gram, while 22K gold is at Rs 12,750 per gram.
• Mumbai: Both 24K and 22K gold are trading at Rs 13,893 and Rs 12,735 per gram, respectively.
• Kolkata: 24K gold is at Rs 13,893 per gram, and 22K gold is at Rs 12,735 per gram.
• Chennai: Gold continues to surge, with prices at Rs 1,02,560 per sovereign (8 grams) and Rs 12,820 per gram, a rise of Rs 20.
• Bangalore: 22 Carat Gold is at ₹ 12,845 per 1 gram, while 24 Carat Gold is at ₹ 13,487 per 1 gram.

Silver Prices

Silver prices are also on the rise, mirroring the upward trend in gold prices. Silver is influenced by global markets, with industrial demand playing a significant role in price fluctuations. The current price of Silver 999 in Delhi, Mumbai and Kolkata is Rs 2331 per 10 grams, while in Chennai it is Rs 2441 per 10 grams.

• Chennai: Silver increased by Re 1 to sell for a record Rs 245 per gram (Rs 2,45,000 per kg) on December 25.

Market Trends and Predictions

The World Gold Council has forecast that gold prices could approach ₹2 lakh per sovereign by the end of 2026. Experts predict silver could potentially soar to $200 per ounce by 2026, driven by inflation fears, industrial demand, and geopolitical unrest.

Technically, silver's indicators are flashing bullish signals as of December 2025. The 50-day moving average has crossed above the 200-day moving average—a classic “golden cross” suggesting upward momentum.

Impact of GST on Gold Rate

The overall gold rate increases due to the addition of GST. After the advent of GST, taxation on gold jewelry is 3.00%. The gold rates are inclusive of 3.00% GST along with 10% custom duty and 5.00% processing fees.