Gold Price in India: Will It Touch ₹90,000 in 2025?

So far, 2024 has been a gold-investor-friendly year, as the returns on investment have gone as high as 23%. Market experts feel that the gold prices may still go up into the new year and may reach ₹85,000 per 10 grams.

According to Jatin Trivedi, VP Research Analyst at LKP Securities, geopolitical uncertainty, central banks' gold buying spree, and declining interest rates are expected to drive gold prices higher. "If the current geopolitical tensions persist, gold prices may soar to ₹85,000 per 10 grams, and even touch ₹90,000 in extreme cases," Trivedi said.

The ongoing Russia-Ukraine war and tensions in West Asia have driven the surge in gold prices this year. According to market experts, these factors will influence gold prices during 2025.

The import duty for gold was decreased to 7.5% in the budget released in July from 10%, which adds up to increased demand. Since the gold price for 10 grams had reduced to ₹5,000, there were more attractively priced and targeted sales amid festivals and marriages.

Therefore, market reports suggest that gold jewellery sales have gone up by approximately 17% in 2024. Further, the increasing demand has been also due to the expansion of branded jewellery stores in Tier-2 and Tier-3 cities.

However, some experts caution that the rise in gold prices may be tempered by the US Federal Reserve's policies and the potential for increased interest rates. Additionally, the growing popularity of cryptocurrencies may also divert some investment away from gold.

Despite these factors, market experts are still bullish on the prospects of gold in 2025. "Though the pace of increase in gold's price may be slower, it is expected to continue its uptrend," said Gnanashekar Thyagarajan, Co-Founder and CEO of Commtrendz Research.

Silver prices, too, are likely to move north and touch ₹1.25 lakh per kilogram. Overall, 2025 seems to be another promising year for precious metal investors.

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