Gold prices in India have witnessed a significant surge, with the yellow metal seeing a bullish trend in January 2025. As of January 20th, 24K gold prices have risen to Rs 81,230 per 10 grams, and 22K gold has reached Rs 74,500 per 10 grams. This increase of 4.2% in gold prices in January has come after a slight decline in December 2024, where prices fell by 1%.
One of the key factors driving this positive trend is the inauguration of Donald Trump as US President for his second term. Investors are reacting to his policies and reforms, expecting a shift in the global market dynamics, which in turn has affected commodity prices, including gold.
Another important factor influencing gold prices in India is the upcoming Union Budget 2025, which is expected to bring changes in import duties on precious metals like gold. Analysts and experts are hoping for favorable measures that could further impact gold prices positively. This comes after a significant cut in customs duties in July 2024, where the government reduced the duties on gold and silver bars by 60% to 6% from 15%. The impact of such measures is still felt, and many anticipate that similar moves could continue to influence gold prices.
The surge in demand for gold in 2024, driven by geopolitical tensions and market volatility, also contributed to the rise in prices. Gold saw a 25% increase in 2024, and the total demand surpassed $100 billion in Q3 2024, setting a new record for the precious metal.
In the current market, with the ongoing uncertainty and positive sentiment around gold's role as a safe haven, investors and consumers are closely monitoring upcoming developments, especially the Union Budget 2025, which could further impact the direction of gold prices in India.
