Gold's Bullish Run Amid Geopolitical Tensions: A 2025 Outlook

Gold continues its strong performance amid global uncertainties, with prices predicted to reach new highs in the domestic market. Central bank purchases, geopolitical tensions, and a shift towards lower interest rates are key drivers. However, U.S. Fed policies and market dynamics could impact future growth.

Gold remains a favorite refuge for investors amid persistent geopolitical tensions and global economic instability. Experts predict that domestic prices could ascend to Rs 90,000 per 10 grams in 2025, driven by central bank activity and dovish monetary policies.

The precious metal concluded 2024 with domestic returns of 23 percent and an international surge, as geopolitical conflicts like the Russia-Ukraine war intensified demand. Despite these projections, U.S. Federal Reserve policies and currency stability concerns might temper growth in the upcoming year.

Market analysts suggest that while 2025 promises continued profitability for investors in gold, factors like U.S. inflation expectations and geopolitical easing could influence its trajectory. A potential rise in the rupee could serve as a counterbalance, affecting local price dynamics.

(With inputs from agencies.)