Chennai: Gold and silver prices have appreciated 21.7 per cent and 17.19 per cent in 2024. The prices of the precious metals are expected to touch Rs 85,000 per 10 gm and Rs 1.30 lakh per kg, respectively in 2025.
Gold and silver have experienced an impressive rally in 2024. At MCX, gold prices moved up 21.72 per cent to Rs 75,970 per 10 gm. Silver moved up 17.19 per cent to Rs 88,461 per kg.
In COMEX, gold prices appreciated 26.82 per cent silver prices went up 24.50 per cent. The surge largely came after a period of pandemic-driven economic uncertainty and is underpinned by several key factors, including central bank policies and geopolitical tensions, finds Motilal Oswal. However, the US Federal Reserve’s monetary policy, dollar movement and geopolitical risks added a layer of complexity to the market dynamics.
“Looking ahead, 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,” it said.
The recent resurgence in gold ETFs, which had seen outflows in previous years, indicates renewed investor interest in gold as a safe-haven asset.
The ongoing geopolitical tensions, including the conflict in the Middle East, have reinforced the dollar's appeal, creating a tug-of-war between the strength of the US currency and the demand for precious metals. As the dollar remains volatile, it adds another layer of uncertainty to the outlook for gold and silver prices.
Kedia Commodities finds that gold could target Rs 85,000 in 2025 and silver Rs 1.3 lakh. According to Motilal Oswal, silver prices could move towards Rs 1.11 lakh and Rs 1.25 lakh in the domestic market and $38.55 and $43 on Comex. Gold could aim at a potential target towards Rs 81,000 in 2025 and Rs 86,000 over the next two years.
