Gold prices witnessed a sharp jump on August 7, with rates rising across all major purities compared to the previous day. The price of 24-carat gold increased by ₹398 per gram, while 22-carat gold climbed by ₹365 and 18-carat gold gained ₹299 per gram, reflecting a strong upward trend in the bullion market.

PurityPrice (Per Gram)
24K Gold (99.9% purity) ₹14,974
22K Gold (91.6% purity)₹13,726
18K Gold (75% purity)₹11,231

City-wise gold rate (1 gram)

Cities24 Carat22 Carat18 Carat
Chennai₹15,001₹13,751₹11,566
Mumbai₹14,974₹13,726₹11,231
Delhi₹14,987₹13,741₹11,246
Kolkata₹14,974₹13,726₹10,231
Bangalore₹14,974₹13,726₹11,231
Hyderabad₹14,974₹13,726₹11,231
Thiruvananthapuram₹14,974₹13,726₹10,231

City-wise silver rate

City(10 grams)(100 grams)(1 kg)
Chennai₹2,501₹25,010₹2,50,100
Mumbai₹2,399₹23,990₹2,39,900
Delhi₹2,399₹23,990₹2,39,900
Kolkata₹2,399₹23,990₹2,39,900
Bangalore₹2,399₹23,990₹2,39,900
Hyderabad₹2,501₹25,010₹2,50,100
Kerala₹2,501₹25,010₹2,50,100

Does inflation influence gold prices in India?

Inflation can affect gold prices, but it is not the primary factor driving gold rates in India. While gold is often considered a hedge against inflation, global interest rate trends- particularly those in the United States- have a much stronger influence on international gold prices.

When inflation rises in the US, the Federal Reserve may respond by increasing interest rates. Higher interest rates make interest-bearing assets such as government bonds more attractive than gold, which does not generate regular income. As a result, investors may shift away from gold, putting downward pressure on its prices.

Since domestic gold prices are closely linked to global bullion markets, changes in US monetary policy, bond yields and the strength of the US dollar often have a greater impact on gold rates in India than local inflation. Investors should therefore keep an eye on global economic developments and interest rate decisions, as these remain key drivers of gold price movements.