The history of gold has indeed been as a safe-haven option during uncertain times. One such year has been 2025, wherein again gold prices in India have soared almost 25% during the early days of the year, currently hovering around ₹85,000 per 10 grams. Speculation prompted by this near-vertical rise is: will gold soon reach the ₹1-lakh mark?
What Could be the Reasons?
Here are some global and local triggers that are lending strength to the price-rally of gold.
The geopolitical tensions that have worsened in the past few months occupy the position of the first trigger. Conflicts running across nations and economic rivalries amongst the stronger countries divert the attention of investors to safer haven assets, much like gold. Gold has been historically known to rally in times of global unrest.
Most central banks across the globe have announced, as of late, an increase in their gold holdings. Such institutional buying puts a tremendous upward pressure on the demand and the supply side and increases the prices.
The ongoing economic uncertainties, particularly inflation, interest rates, and currency depreciation, have led retail and institutional investors to use gold as a hedge for their portfolios.
Will Gold Touch ₹1 lakh?
The most important question reverberating among people is: Is 1 lakh per 10 grams even feasible in 2025?
In answer to this question, the analysts tend to respond in the affirmative but with a cautionary note. According to them at HDFC Securities, gold may call ₹1 lakh in a relatively doggy way, but it is a long time away if gold is bull. The milestone depends on a blended cocktail of factors international gold prices (USD/ounce) and the INR-USD exchange rate.
According to global investment houses like Goldman Sachs, international prices of gold might end up being $3,300 an ounce. So, depending on how much worse the rupee fares against the dollar, prices within India could also be played right up into that ₹1 lakh target.
Should You Invest Now?
For those thinking about investing in gold, the advice from experts is to go long. Rather than time the market, alternate methods of investing, such as gold SIPs or sovereign gold bonds, are recommended.
Gold should also be regarded in combination with other assets in a diversified portfolio, not all on its own. Indeed, its stellar present-day performance could be dimmed by short-run volatility.
Conclusion
The rise in gold prices is merely a reflection of the current uncertainties and changing feelings of investors globally in 2025. Unlikely as it may seem for ₹1 lakh per 10 grams to happen anytime soon, the long-term prospect remains quite promising. Investors should keep an ear to the ground and act wisely while making any such balanced investment as far as gold is concerned.
It's an atical that is full of great information, calling for action on the environment
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