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According to Good Returns, the price of 24 carat gold has soared to 78,340 pounds per 10 grams in India.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, said: “Gold prices are poised for a strong 2025 as geopolitical tensions continue and economic uncertainty stimulates demand for safe-haven assets. It started with a start.”
Other factors influencing gold prices
US dollar weakness: The dollar index fell by 0.2%, making gold more affordable for investors without dollars.
Analysts believe further dollar weakness could support gold’s upward trajectory.
Geopolitical uncertainty: Rising tensions, such as Israeli airstrikes in Gaza and drone strikes in Kiev, are increasing the appeal of gold as a hedge.
Monetary easing:
Central banks such as the US Federal Reserve and the ECB have shifted to easing policies in 2024. When interest rates fall, gold becomes more attractive because it doesn’t earn interest.
Central Bank Purchases: Central banks purchased large amounts of gold reserves around the world in 2024. India alone saw an increase of 77 tonnes, highlighting the role of gold in risk management.
Inflation hedging: Expectations of inflationary pressures from President-elect Donald Trump’s S policies and trade wars make gold even more attractive.
Outlook for 2025
Experts remain optimistic about gold’s performance in 2025.
Renisha Chainani, head of research at Augmont, said gold prices have reached $3,000 per ounce (JPY 85,000 per 10 grams) with strong support levels at $2,500 per ounce (JPY 73,000 per 10 grams). yen).
Chainani advises investors to allocate at least 10% of their portfolio to gold and silver to increase risk-adjusted returns.
“The long-term outlook remains positive over the next five to six months, with prices expected to be volatile but on an upward trend,” he said.
He also urged investors to adopt a “buy on the edge” strategy as gold has shown stability amid uncertainty.
First Published: January 3, 2025 10:32 AM IST
