Gold has been shining bright this year, giving about a 21% return so far! This means it has done much better than popular Indian stock indexes like Nifty 50, BSE Sensex, and Bank Nifty, and has even outpaced inflation.
With Donald Trump winning the US elections again, many are wondering how gold will react. In 2024, gold prices went up mainly because of global tensions, making it a safer investment choice for many.
Experts believe that Trump being back can lead to more trade conflicts, which might worry investors. They might turn to gold, thinking it’s a safer bet. Anuj Gupta, the Head of Commodity & Currency at HDFC Securities, mentioned that during Trump’s second term, stock markets might face difficulties due to these rising tensions—and usually, gold prices go up when that happens.
However, Gupta warned that the increase in gold prices might not be huge because the US dollar should stay strong. In 2025, Indian stock indexes like Nifty 50, BSE Sensex, and Bank Nifty will also face challenges from rising US Treasury yields, the strong US dollar, and other digital assets like Bitcoin.
So, what can we expect for gold prices in 2025? Gupta shares that, in the short term, gold might face some tough resistance at around ₹76,800 for every 10 grams. If it breaks through that price, it could rise further to reach ₹78,000!
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