Gold Prices May Reach Rs 1 Lakh in Late 2025
Current Trends and What to Expect
Gold prices in India are expected to remain strong in the second half of 2025. Experts even predict they could reach Rs 1,00,000 per 10 grams. This insight comes from a report by ICICI Bank Global Markets. Currently, gold prices range between Rs 96,500 and Rs 98,500 per 10 grams.
Recent Trends
- Gold prices increased by 0.6% in June.
- The Rupee weakened slightly by 0.2%, aiding this increase.
- High gold prices have reduced physical demand.
Import and Demand Statistics
Imports have seen a significant drop:
- May imports: $2.5 billion
- April imports: $3.1 billion
Jewellery demand remains weak. However, investment-related buying stays strong. Data from the Association of Mutual Funds in India (AMFI) shows a net inflow of Rs 2.92 billion into gold ETFs in May. This comes after two months of outflows.
Global Investor Interest
Globally, investor interest in gold remains high. For instance:
- SPDR Gold ETF holdings increased from 930 tonnes on June 1 to 948 tonnes on July 1.
- Speculative net long positions rose by around 13,000 lots last month.
Recent Market Behavior
Gold’s sharp rally has cooled off lately. Prices have stayed flat over the past month as safe-haven buying eased. Despite this, gold is still up 28% in 2025.
Reasons for the Pause
One key reason for this pause is the improved global outlook. Several factors contribute to this:
- A ceasefire between Israel and Iran has calmed geopolitical tensions.
- The US has struck trade deals with the UK and Vietnam.
- Progress is being made with Japan, India, and the EU.
- A trade framework with China is expected to be finalized by August.
The report adds, “The easing in geopolitical tensions and expectations that trade-war 2.0 could ease in magnitude have worked to limit further sharp upside emerging in gold prices.”
Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India.
