Gold prices scales to new record high ahead of Gudi Padwa; Is it right time to invest?

Gold prices surged by ₹1,100, reaching a new record of ₹92,150 per 10 grams in the national capital on Friday, driven by rising global precious metal rates, according to the All India Sarafa Association.

Gold prices in India have surged to record highs, supported by the increase is driven by global economic uncertainties, geopolitical tensions, and strong investment demand.

In FY25, gold prices have risen by ₹23,730 or 35 per cent, climbing from ₹68,420 per 10 grams on April 1 last year.

Extending gains for the third consecutive session, gold of 99.5% purity jumped ₹1,100 to an all-time high of ₹91,700 per 10 grams, after closing at ₹90,600 per 10 grams in the previous session.

“Gold prices surged to record highs as investors sought safe-haven assets amid escalating trade tensions. The upcoming week is expected to offer greater clarity on tariff developments, enabling investors to assess their impact on the global economy. Additionally, the market will closely monitor the Indo-U.S. bilateral trade meeting, set to conclude by Saturday, for potential trade policy outcomes. Key economic indicators to watch include U.S. Job opening data and India’s PMI, both of which will provide insights into economic momentum in their respective regions. Meanwhile, investor focus is shifting toward quarterly earnings reports, which are anticipated to provide a clearer picture of earnings recovery,” said Vinod Nair, Head of Research, Geojit Investments Limited.

Is it the right time to invest in Gold ahead of Gudi Padwa?

Gudi Padwa is here, and Akshay Tritiya is just a month away—both key occasions for gold buying. However, with prices at record highs, demand is expected to be muted as many buyers are exchanging old gold for new instead of making fresh purchases, ensuring liquidity while maintaining tradition, according to market experts.

“Gold’s rally has been driven by central bank accumulation and global uncertainties, particularly concerns over trade tensions created by Trump. But once certainty emerges, which we expect post-April 2 following Trump’s tariff announcements, gold’s appeal as a safe-haven asset could weaken, potentially slowing the rally,” said Chintan Mehta, CEO, Abans Financial Services Ltd.

Traditionally, festivals like Gudi Padwa generally boost gold purchases, as people tend to buy the yellow metal on auspicious festivals.

“We believe that this could also potentially elevate prices further due to heightened demand. Looking ahead, the current high prices could lead to reduced demand, and we could see that investors may opt to sell existing gold holdings,” said Sriram Iyer, Senior Analyst commodities Reliance Securities.

Iyer further added, “At the same time, we do expect further price appreciation, with the possibility gold touching ₹93,000 per 10 grams by the end of 2025. So we advise investors to keep investing in gold but wait for dips.”

Mehta advises investors to stay cautious and consider the possibility of a price correction before making fresh investments.

“With gold already delivering ~17% returns just three months into the year, a price correction cannot be ruled out. The sharp rise makes the risk-reward equation unfavourable for fresh investments at current levels. While gold remains a long-term wealth preserver, buying at record highs carries risks. A more prudent approach would be phased buying or waiting for a correction rather than rushing in,” Mehta added.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.