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Gold prices in India recently surpassed Rs 97,000 amid US-China trade tensions. Experts are divided, predicting either a rise to Rs 1 lakh by 2025 or a 38-40% drop.
Gold has hit its fresh record high on Thursday.
Gold Price Outlook 2025: Recent times have seen high volatility in gold prices due to macrolevel uncertainty and the escalation of the trade war between the US and China, driven by Donald Trump’s tariff measures.
On Thursday, gold prices in India surpassed the Rs 97,000 mark after several days of upward movement amid the tariff jitters.
Gold is often viewed as a hedge against uncertainty when other assets, like equities, become volatile. Recently, prices have risen as investors shift their investments from volatile equities to gold. But the question remains: will this upward momentum continue?
Experts hold varied opinions on this matter. Some believe that the price of gold per 10 grams will soon reach Rs 1 lakh this year, while others predict a decrease of 38-40% in the near term.
Will Gold Touch Rs 1 Lakh?
Ryan McIntyre, senior portfolio manager at Sprott Asset Management, states that gold prices are being supported by strong central bank purchases and a mix of geopolitical and economic uncertainty, largely influenced by Trump’s tariff plans.
Colin Shah, Managing Director of Kama Jewelry, told The Hindu Businessline that there is a high probability that gold will hit the Rs 1-lakh mark by 2025, given expectations of two interest rate cuts by the Federal Reserve this year. Shah also noted that as a safe-haven asset, gold experiences increased demand and fund flows during times of economic instability.
Kishore Narne, Director & Head of Commodities at Motilal Oswal Financial Services, mentioned on CNBCTV18 that there is “no ceiling” for gold prices and predicted they could easily rise to $4,000-4,500 per ounce. He emphasized that any set number would eventually be reached.
Chintan Mehta, CEO of Abans Financial Services, shared with Mint that the ongoing gold rally is an extension of the current trend rather than the start of a new uptrend. He does not foresee prices reaching Rs 1 lakh in 2025, as most bullish factors have already been factored in, and there may not be sufficient new catalysts to push gold beyond that mark.
Gold Prices To Drop 38-40%?
John Mills, a market strategist at the US-based financial services firm Morningstar, has predicted that gold prices could drop to $1,820 per ounce, a significant decrease from the current level of around $3,080 per ounce. This would represent nearly a 38-40% decline, which could substantially impact the gold market.
Although the current trend is bullish, Mills and other analysts argue that factors such as increased supply, decreased demand, and market saturation could lead to a sharp fall in gold prices.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
