Gold rate jumps 25% in the ‘Year to Date’, making gold buyers in India change their minds

The outlook for gold remains constructive. Persistent trade tensions, inflationary pressures, and central bank gold purchases will continue supporting prices. Persistent trade tensions, inflationary pressures, and central bank gold purchases will continue supporting prices. Gold has shown exceptional performance in the first four months of 2025, surging nearly 25 per cent year-to-date (YTD) and reaching record highs on both the MCX and COMEX exchanges. This sharp rally is attributed to a combination of heightened geopolitical risks, trade tensions—particularly between the U.S. and China—and a surge in safe-haven demand from both institutional and retail investors.

Gold has shown exceptional performance in the first four months of 2025, surging nearly 25 per cent year-to-date (YTD) and reaching record highs on both the MCX and COMEX exchanges. This sharp rally is attributed to a combination of heightened geopolitical risks, trade tensions—particularly between the U.S. and China—and a surge in safe-haven demand from both institutional and retail investors.

Advising gold investors to maintain a ‘buy on dips’ strategy, Navneet Damani of Motilal Oswal said, “With the global economy navigating through policy uncertainty and slowing growth, gold is likely to remain an attractive asset class. “In an environment dominated by policy uncertainty, inflationary pressures, and volatile geopolitics, gold remains a beacon of stability. As central banks bolster their reserves and investors seek safety, gold will remain a favoured asset. Barring any significant resolution in global trade tensions, we maintain a ‘buy on dips’ view from a medium to long-term perspective. If we go by Goldman Sachs’ given targets, if the gold prices touch the $3,700 per ounce year-end target, the MCX gold rates would touch around ₹1 lakh. However, with the $4,500 per ounce target in further escalation in the US-China trade war, the MCX gold rate would touch ₹1.25 lakh. However, one should look at short-term targets, and in the current market scenario, the gold price is ₹91,000 to ₹97,000 per 10 gm range, and the bull trend will continue until there is some breakthrough in the US-China trade deal talks.”