Gold prices surpassed Rs 80,000 per 10 grams in the domestic market in 2024. (AI image)
Gold price in 2025: In 2025, experts advise investors to maintain gold as an essential element of their investment portfolios, citing its diversification benefits and potential for continued gains for the fourth straight year.
Gold prices surpassed Rs 80,000 per 10 grams in the domestic market, achieving an unprecedented high with over 26% growth in 2024. This surge was driven by global political tensions, anticipated US interest rate reductions, and central bank purchasing activities.
Experts suggest that whilst the gains may be more modest compared to the previous year, investors should capitalise on price dips as purchasing opportunities.
The upcoming US leadership transition to Donald Trump this month adds another consideration for 2025, alongside the factors that influenced 2024's performance.
Gold Price Movement
"Gold was doing well the last time Donald Trump came to power in 2016 but saw initial hiccups after he started pursuing his policies," said Chirag Mehta, chief investment officer at Quantum Mutual Fund. "The uncertainty created after that and the need to diversify away from the dollar led to higher gold prices, and I think it is going to play similarly to what we saw last time," he told ET.
Mehta advocates utilising short-term price corrections as buying opportunities and suggests a gradual approach to gold accumulation over several months.
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"Changes planned by the new US administration are very aggressive and could be inflationary in nature, and interest rates may need to be reduced to support growth," Mehta said. "On a real interest rate basis, if inflation is higher and interest rates are falling, it could be a very bullish scenario for gold," he said.
Gold demonstrated strong performance with 14% growth in 2023 and 12% in 2022, surpassing numerous asset classes over three years.
"2024 has been a golden year for gold - from the perspective of being a safe haven, as a diversifier of portfolios, and from the perspective of returns from an asset class," said Sachin Jain, the regional chief executive officer of India for the
World Gold Council
.
Despite forecasting stable prices throughout the year, he maintains that gold should constitute 10-15% of investment portfolios.
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