Will the rise in gold continue this year as well? This question arises most quickly in the minds of ordinary people. In fact, last year saw the fastest rise in gold prices in the last decade. Gave over 20% feedback.
The reasons are gold purchases by central banks around the world, geopolitical tensions, monetary policy changes and consumer demand in major markets like India and China. This year, this trend will continue and more than 20% returns are expected.
Gold will rise for these main reasons
Continuing uncertainties around the world, such as the possible escalation of existing conflicts and new geopolitical tensions, will increase investments in gold as a safe haven. In emerging markets like India, central banks are actively increasing their gold reserves. This trend will continue until 2025, providing significant support to gold prices. Uncertainty surrounding U.S. economic policies, particularly with the new Trump administration, could increase demand for gold as a hedge against economic instability. the futures market can reach ₹85,000 per 10 grams. Due to the 9% reduction in gold imports in FY2024, jewelry prices in India will increase. The demand has grown by 18% and is expected to grow by 14-18% in FY 2025. India’s organized jewelry market is growing in tier 2 and tier 3 cities. It is estimated that jewelry revenue from brand will grow by 18-20% on an annual basis in fiscal 2025. Gold loans in the country increased by a record 56% last year to Rs 1.54 lakh crore. The trend to buy gold by mortgaging it will further increase this year. This year, gold loans can increase seven times and cross the Rs 10 lakh crore mark.