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In India, gold prices increased by ₹20 to ₹77,460 per 10 grams, reflecting global trends.
US gold futures climbed 0.3% to $2,643.70 per ounce.
The dollar index slipped 0.1%, making gold more affordable for other currency holders.
Market experts highlighted the ongoing geopolitical turmoil, particularly tensions in the Middle East.
“If the situation escalates, gold may gain further,” said Brian Lan, Managing Director at GoldSilver Central.
Record-high gold performance in 2024
Gold has been a standout performer in 2024, gaining 27%—its best yearly performance since 2010.
The surge stems from Federal Reserve rate cuts, geopolitical risks, and its status as a hedge against inflation and volatility.
Prithviraj Kothari, MD of RiddiSiddhi Bullions, emphasised that gold broke 40 record highs this year, with total demand surpassing $100 billion in Q3.
Central banks played a pivotal role, purchasing 745 tonnes of gold by October 2024. The Reserve Bank of India led with a fivefold increase in acquisitions.
Kothari also emphasised five key determinants supporting gold prices in 2024 and influencing trends in 2025:
Monetary policy: Central banks worldwide eased rates in 2024. The US Federal Reserve made three cuts and plans two more in 2025, keeping the outlook bullish for gold.
Geopolitical risks: Uncertainty surrounding Middle East conflicts, Ukraine, and US tariff policies under Donald Trump’s presidency supports gold’s appeal.
Inflation trends: Inflation concerns may persist, particularly in the US, supporting gold as a hedge.
Investment demand: ETF inflows and sustained central bank purchases are likely to underpin gold prices.
Safe-haven appeal: Geopolitical instability and trade uncertainties enhance gold’s status as a universal safe-haven asset.
Outlook for 2025
Kothari predicts gold could touch $3,000 per ounce (~₹85,000 per 10 grams) in 2025.
“Gold remains a chameleon asset, influenced by the US dollar, interest rates, and market sentiment,” he said.
Experts foresee heightened demand as geopolitical risks and economic uncertainties persist.
“Gold remains a chameleon asset, adapting to changes in the U.S. dollar, interest rates, and market sentiment,” said market strategist Yeap Jun Rong.
As investors brace for Trump’s tariff policies and global monetary easing, gold’s safe-haven status will likely keep it in focus.
–With agencies inputs
