Gold Prices Outlook In 2025 Update: The year 2024 has proved to be great for investors investing in gold. In the current year, gold prices have seen a jump of more than 30 percent and gold prices have reached the all-time high. Looking at the track record of the last 10 years, gold has performed the best this year. But the question arises, how will gold perform in the year 2025? The World Gold Council has released a report regarding this.
Gold will trade in this range in 2025!
According to the report of the World Gold Council, due to the economic and geopolitical crisis, the rise in gold prices will not continue like in 2024. According to the report, the movement of gold prices in the year 2025 will depend a lot on the events happening in America. Especially on January 20, 2025, the market will keep an eye on the second term of Donald Trump, who is going to be sworn in as the US President for the second time. During Trump’s second term, the local economy will get a booster dose. But at the same time, there will be an atmosphere of fear among investors around the world.
According to the report, in 2025, there is a consensus that the Federal Reserve, the central bank of America, can cut interest rates by 100 basis points by the end of the year, despite inflation being higher than the target. The European Central Bank can also cut interest rates by the same amount. The US dollar may remain flat or weaken slightly. Global growth is expected to remain positive but it may show growth less than the trend. The actions of the Federal Reserve and the movement of the US dollar will determine the direction of gold prices. But in the last few years it has been seen that these two reasons alone do not determine the price of gold. The demand and supply of gold will also determine it. According to the report, gold may be seen trading in the same range as the current range of gold prices in 2025.
Consumer demand for gold will remain strong in India
According to the report, India and China are the largest markets for gold. 60 percent of the total demand for gold comes from Asia. This does not include the purchases made by central banks. The demand for gold there will depend on the performance of the Chinese economy. However, the situation in India is much better. The economic growth rate remains above 6.5 percent. Consumer demand for gold in India will remain strong.
Rise due to investment by central banks and investors
According to the World Gold Council, gold prices saw a jump in the year 2024 due to the purchase of central banks and increased investment by investors. Despite the decrease in consumer demand, there has been an increase in gold prices. By the third quarter of 2024, 694 tonnes of gold has been purchased by central banks. RBI has bought 27 tonnes of gold in October and its total purchase in 2024 has been 77 tonnes, which is 5 times more than last year.