Gold Prices In India For New Year 2025: Rs 85,000 Or Rs 90,000, What Is New Target For Buying Gold?

Gold prices in India witnessed the strongest surge in 2024, by a whopping 21%, tracking spot gold prices rally of 24% which is the strongest since 2010. Also, on the COMEX, the upside was at a significant 30% to 35%. The New Year 2025 has commenced with great enthusiasm as gold prices in India surged by up to Rs 4,400 in 100 grams of 24K on Wednesday, January 1, 2025. For the new year, the central banks' rate cuts and geopolitical risks are vital drivers for gold prices, however, other key factors will play a key role in shaping the precious metals market. Currently, a buy-on-dips recommendation is given, while the new target in gold prices is between Rs 85,000 to Rs 90,000 per 10 grams for 2025.

Gold prices in India on January 1st of 2025 stood at Rs 78,000 per 10 grams in 24K, while at Rs 71,150 per 10 grams in 22K. The gold price was at Rs 58,500 per 10 grams in 18k. The performance comes after gold prices dipped by 0.6% in overall December month.

In 2024, gold prices in Indian retail stores jumped by 21%, outperforming benchmarks like Sensex and Nifty. Gold also outperformed its counterparts in commodities such as silver, crude oil, and copper prices which jumped by over 17%, 2.5% and 10% in 2024.

Explaining the performance of gold in 2024, brokerage Motilal Oswal Financial Services said, gold and silver have experienced an impressive rally in 2024, gaining approximately 30% and 35%, respectively, on the COMEX. After hitting a peak- some cool off started to set in as uncertainties started to fade off.

Key factors to drive gold and silver prices were primarily central bank policies and geopolitical tensions, as per Motilal.

The brokerage added, a range of other dynamics, such as supply-demand imbalances and domestic market conditions, have influenced the price movement of these metals. The role of central bank actions and geopolitical risks in driving gold and silver prices has been a key factor, considering the broader economic environment.

Gold Prices Outlook For 2025:

Looking ahead, Motilal Oswal stated that the outlook for gold and silver remains positive, although some market consolidation or short-term dips may present buying opportunities. Loose monetary policy environment, coupled with ongoing geopolitical risks, should continue to provide a favourable backdrop for gold and silver.

Also, central banks' ongoing support for their respective economies, combined with the persistent demand for safe-haven assets, suggests that the upward momentum in these precious metals could continue. China still remains a big question mark in terms of the overall growth however, above mentioned factors could continue to support both Gold and Silver prices. Amidst current actions i.e. the stimulus measures work in favour of China, that recovery could also support metal prices, especially industrial metals including Silver, said, Manav Modi - Senior Manager at Motilal Oswal Financial Services.

For investors, Manav suggests, "a buy-on-dips strategy appears prudent"

On the target prices, Manav added, "Silver is down, but not out", as it takes a breather before the next leg up, we remain positive over the medium to long term prospects. Support are near ₹85,000- ₹86,000; for targets towards ₹1,11,111 and ₹1,25,000 on the domestic front & $38.55 and $43 on Comex. Buying on dips is recommended from a 12-15-month perspective.

For Gold: We maintain a positive bias and have revised our upward potential target towards ₹81,000 on the domestic front. Over the next 2 Years, Gold could be on track for the targets of ₹86,000, hence "Buy on dips" is recommended. We could see Comex Gold targeting $2,830 from a medium-term perspective, while longer-term targets could extend to $3,000 and higher."

When asked about whether gold has the potential to hit the Rs 1 lakh mark in 2025, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) in an interview with GoodReturns.In said, "While Rs 1 lakh for gold seems optimistic, it cannot be ruled out in extreme scenarios of economic stress. However, I think there is a high probability of gold touching the $3000 (Rs 85000/10 gm) target in 2025. For silver, targets above Rs 110,000 per kg are achievable, driven by industrial and investment demand."

Furthermore, industry experts are pinning on an average target of Rs 85,000 for gold and a potential of Rs 90,000 as well, if geopolitical tensions continue to persist.

Jateen Trivedi, a LKP Securities VP Research Analyst - Commodity and Currency said, the outlook for gold in 2025 remains positive, though the pace of growth may moderate compared to 2024. He added, "Domestic gold prices are expected to reach Rs 85,000 as modest targets, with a best-case scenario of Rs 90,000 and silver expected to deliver bit higher gains towards Rs 1.1 lakh on modest and even hit Rs 1.25 lakh if geopolitical tensions persist or escalate."