Gold Price Today / Will gold reach Rs 90,000 in 2025? Understand the calculation here

Gold prices may reach Rs 85,000-90,000 per 10 grams in 2025. Geopolitical tensions, soft monetary policy, and central bank purchases are the main reasons for this. A decline is expected in the first half, but a rise is expected by the end of the year. This will be beneficial for long-term investors.

Vikrant Shekhawat : Jan 04, 2025, 08:36 AM
Gold Price Today: The upward trend in gold prices is likely to continue in 2025 as well. Experts estimate that gold may reach Rs 85,000 to Rs 90,000 per 10 grams in the domestic market. There are many global and local reasons behind this, including geopolitical tensions, soft monetary policy, and increasing gold purchases by central banks. Let us know why gold prices can touch new heights.

Previous records and current situation

Gold touched a historic level of Rs 82,400 per 10 grams in 2023. This record was recorded on 30 October. Currently, the price of gold in the Indian spot market is Rs 79,350 and Rs 76,600 per 10 grams in the MCX futures market.

Talking about the global market, gold touched a high of $ 2,790 per ounce on COMEX. This shows that investors are considering gold as a safe option in view of the current economic and political situation.

Effect of geopolitical tension

The ongoing geopolitical tension at the global level is a major reason for the rise in gold prices. The Russia-Ukraine war has completed two years and there is no solution to this conflict in sight.

There is going to be a change of power in the US at the end of January 2025, which will increase uncertainty in global politics. Apart from this, tensions between Israel and Iran are also increasing continuously.

Another major development has been seen in Syria, where rebels have overthrown the Assad government and captured power. In these circumstances, investors are considering gold as a safe investment, due to which its demand is likely to increase.

Ease in monetary policy

The US Central Bank Federal Reserve has cut interest rates. Recently, the Fed has cut interest rates by 25 basis points (0.25%) to between 4.25% and 4.50%. This is the third cut this year.

In India too, after the arrival of the new governor of the Reserve Bank of India (RBI), a reduction in the repo rate is expected. If this happens, the interest rates of banks will come down and the purchasing power of the people will increase.

This soft monetary policy will have a direct impact on gold prices. When interest rates are low, investors are attracted to safe options like gold.

Increasing gold purchases by central banks

A pattern has been observed in the last few years that central banks are constantly increasing their gold reserves.

Central banks of many countries including India are strengthening their reserves by buying gold. If this trend continues in 2025, the chances of increase in gold prices will increase further.

Possibility of decline in the first half of 2025

Experts say that gold prices may see a slight decline in the first half of 2025. This price can go up to Rs 73,000 to Rs 73,500 per 10 grams on MCX.

However, there is every possibility of a boom in the second half. Experts believe that by the end of 2025, gold prices can reach Rs 85,000 to Rs 90,000 per 10 grams.

This fall can become a golden opportunity for investors. This time can be the right time for long-term investors to invest in gold.

What is the advice for investors?

Gold is always considered a safe option from a long-term investment perspective. However, investors should invest only after taking into account the market conditions and the advice of experts.

If you are planning to invest in gold, buying during a possible decline in early 2025 can be a good decision.

Conclusion

Gold prices may touch new heights in 2025. Investors are turning to gold amid global political and economic uncertainties.

Reasons like geopolitical tensions, soft monetary policies, and increasing gold purchases by central banks can cause a surge in gold prices.

However, investors are advised to keep in mind the market fluctuations and the opinion of experts. This may be the right time to invest in gold, but it is important to take steps wisely.