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If you've been eyeing gold lately, here's some news: prices have dipped today (May 13, 2025), giving investors a breather.
Across key Indian cities, gold is now a little lighter on the pocket. Here's where things stand:
Gold price today (per 10g)
| City | 24K gold (Rs ) | 22K gold (Rs ) |
|---|---|---|
| Delhi | Rs 95,770 | Rs 87,800 |
| Mumbai | Rs 95,620 | Rs 87,650 |
| Chennai | Rs 95,620 | Rs 87,650 |
| Kolkata | Rs 95,620 | Rs 87,650 |
| Hyderabad | Rs 95,620 | Rs 87,650 |
| Bangalore | Rs 95,620 | Rs 87,650 |
| Source: Goodreturns | ||
Why are gold prices falling?
Several key factors have contributed to the recent decrease in gold prices:
-
Easing geopolitical tensions
: The announcement of a ceasefire between India and Pakistan has reduced regional uncertainties, leading investors to move away from safe-haven assets like gold.
-
US-China trade developments
: Positive outcomes from recent US-China trade talks have diminished fears over tariffs, reducing the demand for gold as a protective investment.
-
Strengthening of the US dollar
: The dollar has strengthened, making gold more expensive in other currencies and thereby reducing its appeal.
- Investor shift to riskier assets : With improved global market sentiments, investors are reallocating funds to equities and other riskier assets, leading to a sell-off in gold holdings.
Should you chase gold?
Dhirendra Kumar, our CEO, has never been a big fan of gold. Like Warren Buffett, he's always seen it as something that just sits there—shiny, sure, but not exactly useful when it comes to generating returns.
But even he acknowledges that the game may be changing.
In one of his recent columns , he points out how the freezing of Russia's central bank reserves has made other countries nervous about holding too many dollars. The result? Central banks around the world have been stocking up on gold. And this isn't about speculation—it signals a shift in how the global financial system might evolve.
Don't rush in
Take a step back. Gold won't grow your wealth the way equity does. It doesn't pay dividends. It doesn't generate interest. It doesn't build businesses. It just... exists.
That's why Dhirendra has always called gold a hedge, not an investment. It's your insurance policy for the rough times, not your ticket to riches.
So if you're already holding 5-10 per cent of your portfolio in gold, you're good. If you're underweight, you can consider topping up. But that's about it. Don't go overboard.
The smarter ways to own gold
Skip the gold coins and jewellery. For pure investing purposes, physical gold is clunky, expensive, and inefficient.
A better option? Sovereign Gold Bonds (SGBs) . They give you exposure to gold prices and pay you 2.5 per cent annual interest. Plus, if you hold them till maturity, your capital gains are tax-free.
If SGBs aren't available, Gold ETFs or mutual funds are decent alternatives—but they do come with some management costs.
Suggested reads:
Gold ETF vs gold mutual fund: There's only one right choice!
SGBs are costly now. How else can you invest in gold?
How to buy and sell sovereign gold bonds on stock exchanges
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