The gold and silver markets are going through big ups and downs, and Naveen Mathur, who knows a lot about commodities and currencies at Anand Rathi Share & Stock Brokers, shares what’s been happening and what might come next.
2024: Gold and Silver Shining Bright
In 2024, gold and silver have made huge gains! Gold prices went up by 27% around the world and 21% in India. Silver wasn’t far behind, rising by 23.5% internationally and 20% in India. Both metals hit new record prices, with gold at Rs 79,800 for 10 grams and silver over Rs 1 lakh for 1 kilogram around September-October. The main reasons for these increases were a weaker dollar, world issues, and the upcoming U.S. elections.
However, recently, as the dollar got stronger and people expect the Federal Reserve to not lower interest rates as much, gold and silver prices have slowed down a bit. Right now, gold costs $2,623 for one troy ounce, with a support level at $2,609 and resistance at $2,664.
How Currency Changes Affect Gold and Silver
Currency changes are also affecting gold and silver prices. The Bank of Japan is hinting at raising interest rates, which, along with a stronger dollar, is putting pressure on gold and silver.
The Indian rupee recently fell to 85.8 against the dollar and is expected to move between Rs 84.95 and Rs 85.70 in the coming weeks. The dollar index hit a high of 108.54 on December 20, but it’s expected to stay between 107.5 and 108.5 due to lower trading during the holidays.
Investment Tips for 2025
When investing in gold and silver, especially gold, remember it’s not just about making money. They are important for balancing your investment risks. Although gold has performed well this year, it might not always continue that way. It’s crucial to allocate about 10-12% of your portfolio to gold for better risk management.
Today, investors have many options besides just buying physical gold. You can invest in sovereign gold bonds, ETFs, coins, or trade on exchanges. This makes it easier to have a mixed investment strategy.
Invest in gold with a long-term view. A method called staggered investing, like regular savings plans, is a great way to benefit, especially during tough times or world uncertainty when gold usually keeps its value. Adding gold can help you reduce losses in stock markets, making it a key part of a well-rounded investment plan.
Gold is still a reliable choice for long-term portfolio stability. If you’re thinking about investing in gold, options like Nippon Gold BeeS and Nippon Gold ETFs are good choices because they are easy to buy and sell. For silver, silver ETFs are handy too!
(Disclaimer: The ideas and recommendations in this article are not the views of thellv.news)
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