Gold prices is Incremental change in higher modestly on Friday, 20th June, 2025, with 24‑carat gold increasing ₹10 to ₹1,01,090 per 10 grams, reflecting strong safe‑haven demand as regional tensions mounted in the Middle East . Demand patterns were replicated in the 22‑carat version, which also increased ₹10 to ₹92,660 per 10 grams.Silver too caught up, rising ₹100 to ₹1,12,100 per kilogram, highlighting investor preference for real assets amid global uncertainty. 

Gold and Silver Rates Across Major Indian Cities

The standard 24‑carat rate was uniformly priced in important markets such as Mumbai, Kolkata, Chennai, and Bengaluru at ₹1,01,090 per 10 grams. Delhi showed a slight premium as the same gold was offered for ₹1,01,220 per 10 grams . Equivalent homogeneity in pricing was seen for silver too, with Delhi, Mumbai, and Kolkata all pricing at ₹1,12,100/kg, whereas Chennai quoted a bit higher.

Key Factors Driving the Rise in Bullion Prices

Gold's rise is coinciding with an escalating Israel-Iran conflict, which prompted safe‑haven demand in the international bullion market . International spot gold flatlined at about $3,367.60 an ounce, and U.S futures remained unchanged at $3,384.20 .Another dominant variable is the U.S. Federal Reserve's choice to leave interest rates unchanged this week, alongside a less dovish tone on forthcoming rate cuts. This environment lowered the opportunity cost of holding non‑yielding instruments like gold.

Bullion Market Snapshot: Weekly Trends and Levels

After gaining today, gold futures have seen a weekly fall of around 1.9 per cent . Silver also saw minor dips in international markets before rallying moderately .Analysts point out that though safe‑haven demand and rate stability are providing support, a stronger U.S. dollar and higher bond yields may cap further gains.

Market Implications

The increase in local gold prices to ₹1,01,090 per 10 grams for 24-carat gold is a testament to the ongoing interest in safe-haven assets amidst geopolitical tensions. Silver also gained, trading at ₹1,12,100 per kilogram, further affirming a risk-averse sentiment in broader markets. Globally, spot gold remained steady around $3,367.60 per ounce, as underpinned by the U.S. Federal Reserve's move to keep interest rates low, decreasing the opportunity cost of holding non-yielding assets such as gold. Although bullion is underpinned, there are lingering headwinds in the shape of a rising U.S. dollar and rising bond yields, both of which are capable of putting a cap on further appreciation of precious metals. For Indian buyers, any rupee weakness will be able to feed through into local bullion prices to make gold pricier in anticipation of peak seasonal demand in the coming months.

On 20 June 2025, Indian gold and silver prices remained firm, bolstered by safe-haven demand and a supportive interest rate backdrop. However, the next directional move will largely hinge on geopolitical developments and global monetary signals.

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