How Gold Prices Nearly Doubled From Feb 2020 To Feb 2025?

Gold prices in India more than doubled in last 5-years. Yellow metal has immense significance in Indian culture and turned integral part of the country’s heritage for centuries. Demand for gold witnessed steep rise during festivals and wedding seasons. Today gold price in India recorded decline on the occasion of Mahashivratri but the prices of yellow metal jumped by 12.59% since January 1, 2025 and gained nearly 40% from Feb 29, 2024 to February 26, 2025.

How Gold Prices Moved In Last 5-Years In India?

22k gold prices In India on February 29, 2020 stood at Rs 40510. Today, 22k yellow metal prices zoomed past Rs 80,000 level and recorded at Rs 80,550 (February 26, 2025). It indicates gold prices witnessed gain of 98.84% in last 5-years in the country.

How Gold Prices Nearly Doubled From Feb 2020 To Feb 2025?

Gold Prices Jump By 39.78% In 1-Year, Beat Sensex

22k gold prices in India on February 29, 2024 were recorded at Rs 57,590/10 grams. Today, 22k gold price in India jumped to Rs 80,550. It indicates a sharp surge of 39.78% in 22k/10 grams gold from Feb 29, 2024 to Feb 26, 2025.

Meanwhile, Sensex ended the day at 72,500 with the gain of 195.42 points. Sensex ended the day at 74,602.12 with gains of 147 points on Feb 25, 2025. It indicates that BSE Sensex delivered returns of 2.9% from February 29, 2024 to February 25, 2025.

According to Ankit Garg , CEO at Wealthy Nivesh, “Gold has been traditionally classified as a hedging asset. A hedging asset is typically an asset class that is used as a tool against the economic, industry or other types of headwinds. Gold also acts as an indirect call on the dollar as its prices are globally driven and hence indirectly reflect the dollar movement against other currencies as well. Along with crude Gold is counted as major commodities traded all across the globe.”

In India, gold has huge emotional value in addition to being counted as one of the most common family level assets. For centuries, families have been accumulating gold not only for jewellery purposes but also as an asset to be used in times of financial crisis. For a long time, gold was also used as an underlying asset against all currencies. With the advent of paper currency that utility of gold also went away. In the last 5 years, gold prices have nearly doubled. While the last 5 years have shown that gold has performed better than equity markets, more so after the recent downtime in the markets, historically equities have beaten the gold by a huge margin, added Ankit.

How Much Gold Prices Jumped In 2025?

22k gold price on January 1, 2025 stood at Rs 71,500/10 grams and today the prices of 22k yellow metal prices surged to Rs 80,500, indicating a jump of 12.59% in 2025 only.

Factors Driving Rally In Gold Rates

Rise in prices of gold occurred due to several factors that may include geopolitical risks, inflation fears associated with US tariffs. Investors are also keenly awaiting the March 4 deadline for tariff on Canadian and Mexicans imports as US President Donald Trump reiterated measures stay “on time and on schedule.”

According to Reuters, rising price pressures due to tariffs could force the Federal Reserve to keep interest rates higher. Bullion is a preferred hedge against uncertainty and inflation, but higher rates can reduce its appeal as it yields no interest.

Rahul Kalantri, VP Commodities, Mehta Equities, said safe-haven buying and ETF inflows are driving gold higher. “Trump’s tariff threats, Russian drone attacks on Ukraine, and tensions in the Israel-Hamas ceasefire negotiations are fueling demand for gold.”

Meanwhile, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, “market participants are now focused on the upcoming PCE Price Index, which could act as the next major trigger, alongside ongoing developments in Trump’s tariff policies.”

Therefore, it can be concluded here that several factors drive prices of gold upwards that may include geopolitical tensions, interest rates, US dollar, cultural trends, inflation hedge, seasonal influences, and demand-supply dynamics. When demand for gold jumps, the price will also zoom. Gold is also considered a safe haven for investments when inflation rises. Soaring inflation rates triggers higher demand for gold.

(Gold price figures source: Goodreturns.in, Policy Bazaar)

Disclaimer: The story highlights gold prices and should not be considered an investment advice by Moneydaily.in or the author. Moneydaily.in and the author will not be held responsible for any losses caused as a result of decisions based on the above information. Moneydaily.in advises readers to do their own research or consult an expert before making any investment decisions.