Gold Glimmers: A Shining Start to 2025 Amid Global Uncertainty

Gold soared 25% in early 2025, hitting all-time highs as a safe haven amid geopolitical tensions, trade disputes, and inflation. Silver also gained. Central banks boosted gold reserves, supporting prices despite U.S.-China tensions. Investment outlook remains strong, with 'buy on dips' advised for sustained growth.

Gold has surged nearly 25% in the initial months of 2025, touching unprecedented highs on both MCX and COMEX. Silver followed with a 15% rise on COMEX, driven by geopolitical risks and trade tensions, primarily between the U.S. and China, according to a report by Motilal Oswal Financial Services Ltd (MOFSL).

The financial firm forecasts a continued positive outlook for gold, supported by persistent trade frictions, inflation pressures, and central bank purchases. Technically, gold finds solid support around Rs 91,000 per 10 grams and faces resistance near Rs 99,000 on MCX, with COMEX levels between USD 3,100 and USD 3,400 per ounce.

In a global economy grappling with policy uncertainty, Navneet Damani of MOFSL emphasized gold's enduring allure as a stable asset. Investor confidence in gold remains high despite recent tariff tensions, and central banks have been escalating their gold reserves to enhance demand and price stability.

(With inputs from agencies.)