In 2024, gold had one of its best years in ten years, growing by 26%. This rise was thanks to central banks buying gold, conflicts around the world, and hopes that global banks, including India’s Reserve Bank, would keep money policies friendly for the economy. Gold’s price crossed the big milestone of Rs 80,000 for every 10 grams this year, showing strong growth before facing a few challenges. The last price reported was Rs 76,469, which is about 5% lower than its highest point of Rs 80,282.
Narinder Wadhwa, the Managing Director & CEO at SKI Capital, said gold and silver are important for a smart investment mix. With inflation expected to slow and many global issues, both metals are likely to do well in 2025. Investors should see gold and silver as long-term options for keeping their wealth safe against uncertainty.
Wadhwa also noted that silver did even better than gold, climbing nearly 42%. Beginning the year at around Rs 70,000 per kilogram, silver soared past Rs 1 lakh, thanks to strong demand from industries like solar energy and electric vehicles. The festive and wedding seasons in India also increased the demand for these precious metals.
On the other hand, stock markets had a shaky year, with the main indexes, Nifty and Sensex, returning around 9% and 8%, respectively.
Gold’s Performance Over the Last 10 Years
Gold has done well over the past decade, giving back about 8% per year on average, especially during tough financial times or when inflation rises. In 2023, gold saw a 13.1% return.
Looking Ahead to 2025
Gold might face a bumpy road in early 2025. With Donald Trump coming back as U.S. President, a lot could change. Experts worry about how the U.S. dollar may strengthen, which could lower gold prices. Anuj Gupta from HDFC Securities predicts gold could reach Rs 82,000 but might face resistance around Rs 84,500.
Add some more uncertainty to the mix, such as India’s Union Budget 2025 and the Reserve Bank’s decisions under a new governor. Jateen Trivedi from LKP Securities thinks gold will range from Rs 82,000 to Rs 85,000. He also expects silver to do well, with a target of Rs 1.1 lakh, potentially reaching Rs 1.25 lakh.
(Disclaimer: These views and predictions are from experts and do not represent the views of Economic Times.)
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