Gold prices in India experienced an impressive surge of 21% in 2024, closely following the spot gold prices' 24% rally, marking the strongest performance since 2010. On the COMEX, the upside was even more significant, rising by 30% to 35%. The New Year 2025 began with great enthusiasm as gold prices in India surged by as much as Rs 4,400 in 100 grams of 24K gold on Wednesday, January 1, 2025.
For 2025, gold price dynamics are expected to be shaped by several key factors. Central bank rate cuts and geopolitical risks are expected to be significant drivers, but other aspects like supply-demand imbalances and domestic market conditions will also influence price movements. Based on current market trends, analysts suggest a "buy-on-dips" approach, with the target price for gold ranging from Rs 85,000 to Rs 90,000 per 10 grams for 2025.
As of January 1, 2025, the price of 24K gold in India stood at Rs 78,000 per 10 grams, while 22K gold was priced at Rs 71,150 per 10 grams, and 18K gold at Rs 58,500 per 10 grams. Despite a slight dip of 0.6% in gold prices in December 2024, the overall performance last year was stellar, significantly outperforming benchmarks such as the Sensex and Nifty.
Motilal Oswal Financial Services explained that both gold and silver saw impressive rallies in 2024, with gains of approximately 30% and 35%, respectively, on the COMEX. However, after hitting a peak, prices began to cool off as uncertainties began to fade. According to the brokerage, the central banks' monetary policies and geopolitical tensions were the primary factors influencing these rallies.
The price movements were further impacted by various supply-demand factors and the broader economic environment. As central banks continue to adjust interest rates and geopolitical risks persist, gold and silver are likely to remain key assets to watch in the coming months. Experts recommend a cautious but optimistic approach for investors, suggesting that while gold may experience fluctuations, its long-term outlook remains strong.
