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Gold may touch $3,300 per ounce in 2025 amid global worries; INR returns outshine USD: Report

Gold may touch $3,300 per ounce in 2025 amid global worries; INR returns outshine USD: Report

Hans India30-04-2025

New Delhi: Gold prices could climb to $3,300 per ounce in 2025, driven by concerns over slowing economic growth in the US, increasing geopolitical tensions, and rising fiscal deficits, a new report said on Wednesday.
This has led to renewed interest in gold as a safe investment option, especially as equity markets see corrections, as per a report by Capitalmind Financial Services Private Limited.
The report highlights that gold has proven to be a strong and reliable asset for Indian investors over the long term.
Despite its price volatility in global markets, gold has consistently delivered positive returns in Indian rupee (INR) terms.
In fact, the study points out that gold has never had a negative decade in INR, while it faced two decades of negative returns in US dollar (USD) terms.
Anoop Vijaykumar, Head of Research at Capitalmind, said that gold plays a dual role. It acts as a store of value over the long run while also being a volatile asset prone to short-term ups and downs.
For Indian investors, however, the depreciation of the rupee against the dollar has made gold a relatively safer bet.
'While gold may not generate cash flows or compound like equities, its low correlation with other assets makes it essential for diversification,' he added.
He also advised that the best way to include gold in one's investment portfolio is through systematic rebalancing.
This means adjusting gold holdings regularly as part of a long-term strategy, rather than buying out of fear or missing out.
The report outlines key reasons for the recent surge in gold prices. One major factor has been the escalating trade war between the US and China.
High US tariffs on Chinese goods and retaliatory tariffs by China have pushed investors toward safe-haven assets like gold.
Analysts have linked an $800 per ounce surge in gold prices in 2024 to these trade tensions. Additionally, the depreciation of the Chinese yuan also played a role in boosting gold demand, the report said.

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