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Gold Prices Outlook In 2025 Update: The year 2024 has proved to be a great year for investors investing in gold. In the current year, there has been a jump of more than 30 percent in the prices of gold and the prices of gold have reached the all-time high. If we look at the track record of the last 10 years, gold has performed best this year. But the question arises, how will the performance of gold be in the year 2025? The World Gold Council has released a report regarding this.
Gold will trade in this range in 2025!
According to the World Gold Council report, due to the economic and geopolitical crisis, the rise in gold prices will not continue like in 2024. According to the report, the movement of gold prices in the year 2025 will largely depend on the events happening in America. Especially the market will keep its eyes on the second term of Donald Trump, who is going to take oath as US President for the second time on January 20, 2025. The local economy will get a booster dose during Trump’s second term. But at the same time, there will be a situation of fear among investors all over the world.
According to the report, in 2025, there is a consensus that the Federal Reserve, America’s central bank, can cut interest rates by 100 basis points by the end of the year, despite inflation exceeding the target. The European Central Bank can also cut interest rates by the same amount. The US dollar may remain flat or weaken slightly. Global growth is expected to be positive but it may show lower growth than the trend. The actions of the Federal Reserve and the movement of the US dollar will decide the direction of gold prices. But in the last few years it has been seen that these two factors alone do not decide the price of gold. The demand and supply of gold will also decide this. According to the report, gold can be seen trading in the same range of its current price in 2025.
Consumer demand for gold will remain strong in India
According to the report, India and China are the biggest markets for gold. 60 percent of the total demand for gold comes from Asia. This does not include purchases being made by central banks. The demand for gold there will depend on the performance of the Chinese economy. However, the situation is much better in India. The economic growth rate remains above 6.5 percent. Consumer demand for gold will remain strong in India.
Increase due to investment by central banks and investors
According to the World Gold Council, in the year 2024, there was a rise in gold prices due to purchases by the Central Bank and increased investment by investors. Despite the decline in consumer demand, an increase in gold prices has been seen. By the third quarter of 2024, 694 tonnes of gold has been purchased by central banks. RBI has purchased 27 tonnes of gold in October and its total purchase in 2024 has been 77 tonnes, which is 5 times more than last year.
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