New Delhi— Gold prices may surge to $3,300 per ounce in 2025 as global economic concerns, rising geopolitical tensions, and widening fiscal deficits drive investors toward safer assets, according to a new report by Capitalmind Financial Services Pvt. Ltd.
The report notes growing interest in gold as equity markets face corrections and economic uncertainty looms, particularly in the U.S. As a result, gold is regaining its appeal as a reliable long-term store of value.
Notably, gold has been a consistently strong performer for Indian investors, despite its global price volatility. While the metal experienced two decades of negative returns in U.S. dollar (USD) terms, it has never posted a negative decade in Indian rupee (INR) terms. This resilience is largely due to the rupee’s gradual depreciation against the dollar, which has buoyed returns for Indian holders of gold.
“Gold plays a dual role—it’s volatile in the short term but holds its value over the long term,” said Anoop Vijaykumar, Head of Research at Capitalmind. “It doesn’t generate income like stocks, but its low correlation with other asset classes makes it a key component in a well-diversified portfolio.”
Vijaykumar recommends that investors include gold through systematic rebalancing, rather than chasing price spikes out of fear or market hype.
The report also links the recent surge in gold prices—up by $800 per ounce in 2024—to heightened U.S.-China trade tensions and currency fluctuations. The depreciation of the Chinese yuan and escalating tariffs between the two countries have prompted investors to seek the stability of gold.
As global economic risks persist, gold is expected to maintain its upward momentum and remain a favored asset for those seeking protection from market volatility. (Source: IANS)
