Current Trends: Gold Prices on the Rise
Gold prices are currently witnessing a steady surge, but their future trajectory largely depends on how global and domestic conditions evolve. Experts have started releasing projections about how much gold could cost by the end of 2025. Let’s take a detailed look at what the future might hold for gold investors.
Why Are Gold Prices Rising?
The primary reason behind the recent spike in gold rates is linked to the United States. Uncertainty stemming from America’s trade and tariff policies has shaken global markets. In response, many investors are pulling their money out of volatile assets and parking it in gold, considered a “safe haven” during economic instability.
Over the past few months, gold investments have yielded impressive returns of about 30%, making it an even more attractive option for cautious investors.
India’s Gold Market: What’s Driving the Boom?
In India, gold prices have also seen historic highs. Recently, gold crossed the ₹1 lakh per tola mark — a figure that had many market watchers stunned. Previously, experts had predicted gold might touch ₹1 lakh by the end of the year, but strong demand pushed it past that milestone much earlier.
With the end of Kharmas (an inauspicious period), wedding and festive purchases have resumed, driving fresh demand for gold jewelry. This surge in demand has contributed significantly to gold’s remarkable price rise.
Decline in Gold Buyers
Despite skyrocketing prices, bullion traders report a sharp decline in the number of gold buyers. Customer footfall has dropped by 30–35%, as gold has become increasingly unaffordable for the average buyer. Those who must purchase for weddings or special occasions are now opting for lighter, less expensive gold jewelry pieces.
Recent Correction in Gold Prices
After a prolonged rally, gold prices have recently seen some cooling off both in India and globally. On the MCX (Multi Commodity Exchange), gold prices recorded a major decline of ₹4300 per 10 grams in just one week. Gold had peaked at ₹99,358 per 10 grams during the week but closed at around ₹95,000 per 10 grams on Friday.
Expected Gold Prices by End of 2025
Experts offer varying opinions about where gold prices are headed by the end of 2025. Much will depend on global political and economic developments. However, current trends suggest that gold might continue its upward journey in the near term.
Possible Big Leap After Three Months
The Trump administration has currently put new tariffs on hold for 90 days. However, once those tariffs are enforced, analysts believe gold could experience another sharp spike after three months, offering another rally opportunity for investors.
Predictions: Will Prices Rise or Fall?
- John Mills’ Prediction:
Financial expert John Mills predicts that by the end of the year, gold prices could decline. He anticipates that as economic conditions stabilize, investors will move back to the stock market, causing gold prices to fall. Mills expects gold to drop to around $1800 per ounce, which translates to roughly ₹56,000 per tola in Indian currency. - Goldman Sachs’ Outlook:
On the contrary, Goldman Sachs presents a much more bullish forecast. They predict that gold prices could surge between $4000 to $4500 per ounce by year-end. In Indian terms, this would mean gold could soar to between ₹1,20,000 and ₹1,38,000 per tola.
Conclusion: A Volatile Road Ahead for Gold
While gold continues to shine in uncertain times, its future price movements will be heavily influenced by global trade policies, investor sentiment, and economic recovery trends. Whether it’s a record-breaking rally or a sharp fall, gold investors should brace themselves for a volatile ride ahead.
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