Gold Rates to Fall in Coming Quarters in India

Gold is more than just a metal; it’s an emotion, an investment, a symbol of prosperity. In India, gold holds a special place in our culture, intertwined with traditions, festivals, and financial security. So, it’s no surprise that the question on everyone’s mind is: Will gold rates fall in 2025 in India?

Gold prices are set to reach ₹85,000 per 10 grams in 2025, driven by a mix of central bank buying, geopolitical tensions, and economic uncertainties, according to a report by ICICI Direct. The precious metal has already seen a strong rally in 2024, hitting an all-time high of $2,790 per ounce. With the US Federal Reserve cutting interest rates and persistent fears of a global trade war, gold remains a safe-haven asset for investors.

But will this upward trend continue? Let’s dive into the key factors influencing gold prices and what lies ahead in 2025.

Current Updates on Gold Prices (as of February 2025)

Here are the latest developments influencing gold prices as of February 2025:

Gold Hits ₹85,000 per 10 Grams: Prices have surged, with spot gold expected to rise further towards $2,900-$3,000 per ounce in the coming months.
Central Bank Purchases: Global central banks bought 186 tonnes of gold in Q3CY24, with total annual purchases reaching 694 tonnes. China remains a top buyer, adding 5 tonnes in November 2024.
ETF Flows: Gold ETF inflows remained strong for six consecutive months until October 2024, but saw outflows in November due to a stronger dollar and rising US Treasury yields.
US Federal Reserve Policy: After cutting rates by 100 bps in 2024, the Fed is expected to be cautious in 2025 due to inflation risks tied to Trump’s economic policies.
Rupee Depreciation: On the domestic front, rupee depreciation has contributed to higher gold prices in India, making it even more expensive for local buyers.

Factors Influencing Gold Prices

Several factors are contributing to the anticipated surge in gold prices in 2025:

Central Bank Buying: Global central banks, especially China, have been aggressively purchasing gold to diversify reserves, adding significant demand pressure.
Geopolitical Tensions: Conflicts in the Middle East and Eastern Europe, along with potential trade wars, are pushing investors towards gold as a safe-haven asset.
Monetary Easing: The US Federal Reserve’s decision to cut rates by 100 basis points in 2024 has fueled gold’s rally, with more easing expected in 2025.
Economic Uncertainties: Concerns over global economic slowdowns and US trade policies under Trump have added to gold’s appeal as a store of value.
Inflationary Pressures: Persistent inflation, particularly in the US, is expected to limit the Fed’s ability to cut rates further, supporting higher gold prices.

When to Invest in Gold

If you’re considering investing in gold, here are some key points to keep in mind:

During Economic Uncertainty: Gold performs best when economic conditions are unstable, making it a reliable asset during periods of recession fears or market volatility.
Before Major Geopolitical Events: With geopolitical tensions high in Eastern Europe and the Middle East, investing in gold before further escalations can help safeguard your wealth.
When Interest Rates Are Low: The Federal Reserve’s rate cuts have historically supported gold prices. With rates expected to remain low, now is a good time to consider investing.
Diversify Your Portfolio: Gold is a crucial part of a diversified portfolio, acting as a hedge against inflation and currency fluctuations.
Before Further Price Increases: With prices already on the rise and projections suggesting further growth, early investment can help maximize returns.

Also Read: Will Gold Price Increase or Decrease? Bengaluru’s Gold Pulse

Conclusion

Will Gold Prices Fall in Coming Quarters in India 2025?

Gold prices are likely to stay strong, but factors like a strong US dollar, rising US Treasury yields, and stable global trade may slow the rally. However, ongoing geopolitical tensions, inflation, and central bank buying make a sharp drop unlikely. If you’re wondering Will the Gold Rate Decrease in Upcoming Days, it’s vital to know Why Gold Prices is Increasing in India and the Top 10 Reasons to Invest in Gold, plus the Top 10 Benefits of Buying Digital Gold for informed decisions. In India, rupee depreciation and festival demand will keep prices high. Minor corrections may happen, but gold is expected to remain on an upward trend in 2025.

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