Gold Prices Hit Record High On February 5: 24K Gold At Rs 15,960 Per Gram As Global Dollar Weakness Drives Rally

Gold prices surged to fresh highs in Delhi on February 5, reflecting strong global demand and economic uncertainty.
Investors are increasingly shifting towards gold as the US dollar weakens and central banks expand bullion reserves.
Experts say the current rally is linked to global financial shifts rather than a single crisis event.

• What happened: 24K gold reached about Rs 15,960 per gram, while 22K gold stood near Rs 14,631 and 18K gold at Rs 11,974.

• Why it matters now: Rising gold prices signal investor caution amid currency fluctuations and global economic shifts.

• What changes for people: Jewellery costs may rise, while investors holding gold could see portfolio gains.

• Who is affected: Retail buyers, investors, jewellers, and central banks worldwide.

Gold prices in India climbed sharply alongside international markets, continuing a rally that has seen bullion gain roughly 70 percent globally and 76 percent in India over the past year. Market analysts say the surge reflects a broader move by investors toward safe-haven assets during periods of economic uncertainty.

Why gold is rising despite easing geopolitical tensions

Even though some global tensions have eased, economic concerns remain elevated. A major factor behind the surge is the decline in the US dollar, which reportedly weakened by around 10 percent during 2025.

A weaker dollar often makes gold more attractive, as investors seek assets that can preserve value during currency fluctuations. Analysts say this trend has intensified demand from both institutional and retail investors.

Central banks and global reserve shifts

Another driver behind the rally is increased gold buying by central banks. According to international financial data, the share of the dollar in global reserves has declined from about 71 percent in 1999 to 58.5 percent in 2024, encouraging countries to diversify their holdings.

Some nations are also exploring alternatives to the dollar-based financial system, partly influenced by sanctions policies and changing global trade dynamics. Experts say these shifts are boosting long-term demand for gold.

Impact on India’s economy and markets

India, one of the world’s largest gold consumers, has seen domestic prices rise alongside global trends. The weaker dollar has provided some support to the Indian rupee, while India’s gold reserves reportedly increased from 14 percent to 17 percent.

For consumers, higher gold prices could increase the cost of jewellery and wedding purchases, while investors may view the rally as an opportunity for long-term portfolio diversification.

Why investors are watching the US connection closely

• Currency trends: Dollar weakness typically strengthens gold prices worldwide.

• Global finance: Central banks diversifying reserves can create sustained demand.

• Market psychology: Gold often rises during periods of economic uncertainty even without a major crisis.

Experts caution that rapid rallies can also lead to volatility, and prices may fluctuate based on interest rate decisions and global economic signals.

What to watch next

Market participants will track movements in the US dollar, central bank buying patterns, and upcoming economic data releases. Any major shift in global monetary policy could influence whether gold continues its upward momentum in the coming weeks.