The market is moving through uncertainties. The smell of gunpowder is getting stronger in West Asia and there is no sign of any cessation of hostilities between Russia and Ukraine. The flow of FPI dollars into China has picked up following a stimulus package that could amount to $1.5-2 trillion. Various central banks in the world, led by US Federal Reserve is either moving towards a rate cut or has already embarked on the journey to inject growth.
In these circumstances, the focus of the market will be on gold prices. Significantly, the price of gold in India is substantially dependent on the price of the metal in the global markets since India imports a huge quantity of gold every year. In FY24, it imported gold worth $45.54 billion, a rise of 30% compared to FY23.
Gold price Forecast for 2025, 2026
Last week HSBC raised its forecast of gold price attributing it to a mix of reasons such as fiscal imbalance, geopolitical risks and continued monetary easing.
The MNC bank has said that towards the end of September, prices of the yellow metal jumped to a record of $2,865 per ounce in the global markets. By the way, 1 ounce equals 28.3495 gms.
HSBC said average gold prices would climb to $2,625 per ounce in 2025. For 2026, the price has been predicted to be $2,515 per ounce.
New peaks in 2025
Prominent global investment bank Goldman Sachs also said that gold is likely to scale new peaks in early 2025. The yellow metal has already risen by 20% in 2024, it noted.
“In this softer cyclical environment, gold stands out as the commodity where we have the highest confidence in near-term upside,” Goldman Sachs mentioned in its note.
“Sentiment appears bullish, and while the near-term upward trajectory shows no signs of easing, the rally may be becoming overstretched,” HSBC wrote.
IBJA price in the past 7 days
According to India Bullion and Jewellers Association (IBJA) data, the price of 10 grams of gold in the period between October 11 and 3 was Rs 75,600, Rs 74,830, Rs 74,834, Rs 75,606, Rs 75,586, Rs 76,082 and Rs 75,762.
With armed conflicts threatening to escalate in West Asia and monetary easing by various central banks around the world, the price of gold could be breaking new records, feel two major MNCs. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
