Historical Trend of Gold Rate – Gold Price History in India

Gold has always held a significant place in Indian households, whether for weddings or investments. Over time, its prices have risen sharply due to factors like geopolitical events, economic changes, and growing demand. 

In this blog, we will explore the historical trend of gold prices in India, along with the key factors affecting its prices and why the prices of gold have risen exponentially in the last few years.

Evolution of Gold Prices in India

The changes in gold prices in India reflect global events, economic policies, and evolving demand. Let’s explore how prices have moved from the 1960s to the present day.

The Early Days (1960s-1970s)

• In 1960, the price of gold was around ₹60-₹100 per 10 grams.
• Unlike today, people generally didn’t own gold, and imports were restricted.
• Around 1970, the gold prices saw a sharp jump because of rising global oil crises, inflation, and instability in global economic conditions.

Liberalization Phase (1990s)

• During the liberalization phase, restrictions on gold imports were lifted.
• This increases the demand for gold. Hence, pushing the prices above 4000 INR per gram.

Golden Era (2000-2010)

• From 2000 to 2010, this period can be called the Golden Period of Gold.
• The major financial crises, like the dot-com crash and the global financial crisis of 2008, increased the price of gold to around 18000 INR by the end of 2010.

Covid Period (2019-2021)

• In the year 2020, the COVID-19 pandemic hit the world and made gold a haven for investors. 
• Due to COVID, the prices of gold touched around 50,000 INR per 10 grams.

Current Scenario (2021-2025)

• Since early 2021, gold has been volatile, fluctuating between ₹48,000 and ₹65,000 per 10 grams.
• Various global events took place during this period, including the Russia-Ukraine war, rising interest rates, the Israel-Iran conflict, etc. 

Historical Gold Rates in India

The table below shows the historical gold rates in the country since 1964:

Year	Price (₹ per 10g of 24K)
1964	63.25
1965	71.75
1966	83.75
1967	102.50
1968	162.00
1969	176.00
1970	184.00
1971	193.00
1972	202.00
1973	278.50
1974	506.00
1975	540.00
1976	432.00
1977	486.00
1978	685.00
1979	937.00
1980	1,330.00
1981	1,670.00
1982	1,645.00
1983	1,800.00
1984	1,970.00
1985	2,130.00
1986	2,140.00
1987	2,570.00
1988	3,130.00
1989	3,140.00
1990	3,200.00
1991	3,466.00
1992	4,334.00
1993	4,140.00
1994	4,598.00
1995	4,680.00
1996	5,160.00
1997	4,725.00
1998	4,045.00
1999	4,234.00
2000	4,400.00
2001	4,300.00
2002	4,990.00
2003	5,600.00
2004	5,850.00
2005	7,000.00
2006	8,490.00
2007	10,800.00
2008	12,500.00
2009	14,500.00
2010	18,500.00
2011	26,400.00
2012	31,050.00
2013	29,600.00
2014	28,006.50
2015	26,343.50
2016	28,623.50
2017	29,667.50
2018	31,438.00
2019	35,220.00
2020	48,651.00
2021	48,720.00
2022	52,670.00
2023	65,330.00
2024	77,913
2025	1,01,660

Factors Affecting Gold Rates in India

The key factors affecting gold rates in India are as follows:

1. Rising Interest Rate: With the rise in the interest rate, fixed-income securities became more attractive, and investors prefer to invest in fixed-income securities. Due to this, the demand for gold may drop, hence reducing the prices of gold.
2. Demand: During the festive and wedding season, the demand for gold will increase, and because of limited supply, the price of gold will increase.
3. Geopolitical Conditions: During geopolitical tensions, wars, trade disputes, or economic crises, gold is considered a safe haven, which increases demand and pushes up its price.
4. Government Policies: Import duties implemented by the government on gold can directly affect the domestic gold prices. The higher the import duty, the higher the gold price.

Why are Gold Prices Rising?

The key factors why the prices of gold are rising are as follows:

1. Global Tension: Geopolitical tension across the globe, such as the Israel-Iran conflict, the Russia-Ukraine War. The fear of economic slowdown led to an increase in gold prices.
2. Weakening of Indian Currency: Over the past few months, the rupee has weakened against the dollar, and the import of gold has become more expensive.
3. Central Bank Purchasing: The central banks of developing countries are purchasing gold in order to reduce their dependency on the US dollar, which increases the demand and price of gold.

Conclusion

On a concluding note, historically, gold has always found a way to shine. Indians have always considered gold not only as an investment option but also as a status symbol. In the short run, prices of gold might see some volatility; however, in the long run, the trend has been steadily upward. However, in the past year, because of geopolitical events, the prices of gold have increased exponentially. Therefore, it is advisable to consult your investment advisor before making any investment in gold.

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