Gold prices jumped to the news headlines for a significant period in 2024. After a brief slackening, the prices of the precious metal has against started rising. IBJA (India Bullion and Jewellers Association) data show that the gold prices rose to Rs 80,430 on January 24. The prices of gold rose by about 25% in 2024 — offering a big appreciation to investments by the common man. The prices of the metal fell in November 2024 after uncertainties over the US presidential election ebbed in November 2024. A very important question, therefore, is how will the yellow metal behave this year? And will it touch Rs 1 lakh in 2025?
Analysts have pointed out that central bank are playing a significant role in the current rally. “Central banks usually purchase about 400 tonnes of gold annually. However, in 2022 and 2023, they bought over 1,000 tonnes each year,” Vikram Dhawan, head of commodities and fund manager, Nippon India Mutual Fund, was quoted in the media. Significantly, central banks stepped up buying of gold after prices fell following the election of Donald Trump in the US. On January 28, the price of 10 grams of gold in New Delhi stood at Rs 82,080.
Demand to remain firm
Experts don’t foresee any let up in demand even after the prices rise. “India and China together account for approximately 50 per cent of global physical gold demand, primarily for jewellery,” Dhawan from Nippon India Mutual Fund told the media. Though experts observed tepid demand for gold for investment purposes, they were also of the opinion that currency volatility and uncertainty over monetary policy could stimulate investment demands too. Significantly, while gold prices has a softening effect after Trump’s election as US President, his advocacy of soft interest rates and tariff walls have contributed to gold prices firming up, analysts noted. “Statements from President Trump advocating global interest rate cuts and raising tariff threats have created an uncertain economic environment, further boosting gold prices,” Manav Modi, analyst at Motilal Oswal Financial Services Limited told the media.
IBJA rates in the past few days
According to the India Bullion and Jewellers Association website, the gold rates have been the following:
- January 21: Rs 79,449 (per 10 gms)
- January 22: Rs 80,142
- January 23: Rs 80,126
- January 24: Rs 80,430
- January 27: Rs 80,048
Experts have indicated that the second half of the current year could rise even faster. They predict that while the first half of 2025 could see subdued price growth, price momentum could resume in the latter half. A repeat of the financial market volatility seen during Trump’s previous term could further support gold. Deveya Gaglani, senior research analyst, Axis Securities was quoted in the media as saying that they expect gold to deliver about 12%-15% return in 2025.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals and crypto assets.)
After a brief lull, gold prices have again started moving upwards. IBJA (India Bullion and Jewellers Association) data show that the gold prices rose to Rs 80,430 on January 24. Analysts are forecasting strong demand for the yellow metal this year, thanks to geopolitical tension and macroeconomic uncertainty. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
