Gold prices are expected to rise further and may touch $3,600 per ounce in global markets by the end of 2025, according to a report by Ventura Securities.
The brokerage said that the surge will be driven by global economic challenges, geopolitical tensions, high investment demand, and possible U.S. interest rate cuts.
Recently, gold futures on the Comex exchange touched an all-time high of $3,534.10 (August 7). In India, gold futures for October delivery also hit a record ₹1,02,250 per 10 grams the next day.
Why Are Gold Prices Rising?
- Inflation pressure and a weaker U.S. dollar
- Expected interest rate cuts by the U.S. Federal Reserve
- Strong demand from central banks, ETFs (exchange-traded funds), and retail investors
- Geopolitical risks and trade tensions across the world
Gold Demand Growing Globally
- Global gold demand rose 3% year-on-year in the April–June quarter to 1,249 tonnes, worth $132 billion (up 45% in value).
- ETF investments in gold grew strongly, with holdings up 16% to 3,616 tonnes by June 30.
- Assets under management of gold ETFs rose 64% to $383 billion.
India Following the Trend
- Indian gold ETFs saw holdings jump 42% to 66.68 tonnes by June 30.
- Assets under management nearly doubled to ₹64,777 crore.
- The number of investor accounts increased 41% to 76.54 lakh, marking a huge 317% growth in the last four years.
Younger investors in India are shifting towards ETFs, digital gold, and fractional ownership instead of traditional jewelry or coins.
Gold as a Strong Investment
Ventura highlighted that gold has given positive returns in 14 of the last 20 years.
- Over the past three years, gold delivered average annual returns of 23%, much higher than the Nifty 50 index (11%).
With the RBI stopping new Sovereign Gold Bonds in 2024, experts believe ETFs and digital gold will see even more demand in the coming years.
Gold is expected to hit new record highs this year, driven by global risks, strong investor demand, and rising popularity of digital investment options.
