Gold Market Outlook 2025: Industry Leaders and Analysts Predict Continued Growth

As we move into 2025, gold continues to solidify its position as a reliable investment and cherished ornament. Industry leaders and analysts are optimistic

Gold is set to retain its allure in 2025 as a reliable investment and ornament, with industry leaders and analysts optimistic about the precious metal’s outlook amid persistent inflation, geopolitical risks, and evolving market dynamics.

As we move into 2025, gold continues to solidify its position both as a safe investment and a cherished ornament. Industry leaders and analysts are optimistic about the precious metal’s outlook, citing factors like inflation, geopolitical risks, and evolving market dynamics.

Piyush Gupta, Director at PP Jewellers, highlights that gold’s appeal as both a safe investment and a symbol of adornment is set to rise in 2025, particularly with growing emphasis on sustainable sourcing practices. “Gold will continue to shine in the coming year, driven by its enduring appeal and its status as a hedge against uncertainty,” Gupta notes.

Vikas Singh, MD & CEO of MMTC-PAMP, points to India’s cultural connection with gold and the recent reduction in import duties as key factors that will further fuel the sector’s growth. “The gold market is evolving with innovations like digital gold and ETFs, alongside traditional physical purchases, making it an attractive option for diversified portfolios. We remain bullish on gold’s long-term potential,” Singh says.

Rahul Joseph, Founder and CEO of White Gold, sees gold prices steadily climbing due to persistent inflation and geopolitical uncertainty. “Despite fluctuations in 2024, gold proved its resilience,” Joseph explains. “With government initiatives promoting gold monetisation and increasing investments in digital gold, I’m confident that gold will remain a strong investment in 2025.”

Gold’s ability to retain its value during times of crisis is one of its key strengths. Analysts at Citigroup predict that gold could surpass $3,000 per ounce by the end of 2025, driven by geopolitical risks and ongoing inflation. The possible return of Donald Trump to the US presidency and global instability only enhance gold’s role as a safe-haven asset, they argue.

ICRA forecasts a robust 14-18% year-on-year growth in domestic gold jewellery consumption in 2025, spurred by the wedding and festival seasons. Following an 18% growth in gold jewellery consumption in FY2024, the momentum is expected to carry forward into the new year.

However, the World Gold Council (WGC) takes a more conservative stance, forecasting a slower pace of growth for gold in 2025. According to the WGC’s outlook, gold will continue to perform well as a safe-haven asset, but modest price increases are expected, barring a rapid deterioration of financial conditions or increased central bank acquisitions. The WGC believes that while the macroeconomic backdrop may limit growth, there is still potential for gold to see gains depending on broader financial conditions.

In conclusion, while views on gold’s 2025 performance vary, its appeal as a hedge against global uncertainty and inflation remains a driving force. As geopolitical risks continue to rise, gold is likely to remain a key investment asset for those seeking stability in an unpredictable world.