Will gold prices continue to rise? Report recommends 'risk management'
&imwidth=600&imheight=450&format=webp&quality=medium "Will gold prices continue to rise? Report recommends 'risk management'")
In India, the prices of gold rose because the rupee depreciated. Photograph: (AFP file)
Gold prices in India: Fresh accumulation could be considered on dips toward Rs 1,14,000-Rs 1,18,000 per 10 grams, with upside potential up to Rs 1,42,000.
Gold prices are continuing to surge in 2025 because of a mix of factors, including global fiscal concerns, currency weakness, and strong institutional buying. The precious metal has delivered over 65 per cent returns this year as investors are buying gold amid rising market uncertainty. In India, gold prices were above Rs 1.28 lakh per 10 grams.
Will the gold prices continue to rise?
A report by Religare Broking says that sustained central bank buying and persistent fiscal stress across major economies will continue to support gold prices in the near term. It, however, advised investors to focus on risk management as well. It is recommended that investors adopt a staggered buying approach.
Fresh accumulation could be considered on dips toward Rs 1,14,000-Rs 1,18,000 per 10 grams, with upside potential up to Rs 1,42,000. A decisive fall below Rs 1,05,000, however, may trigger a deeper corrective phase, the report added.
Why are gold prices increasing?
The report said that gold has emerged as a reliable hedge against both currency depreciation and market volatility. Whenever any stress threatens economic stability, gold becomes a safe haven investment.
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A weaker dollar typically lifts gold prices. This is because it makes gold cheaper for currency holders.
In India, the prices of gold rose because the rupee depreciated.
Across the world, central banks played a key role in sustaining gold's rally. Their continued accumulation of gold signals confidence in its long-term stability. Global central bank purchases surpassed 1,000 tonnes for the third consecutive year in 2024.