New Delhi, March 16 (IANS). Gold prices will continue to rise in 2025 due to the purchase of central banks and Gold Exchange Traded Fund (ETF). This information was given in a report.
Motilal Oswal Private Wealth Report reported that gold prices are expected to increase due to geopolitical stress and economic uncertainties. At the same time, the purchase of central banks will play an important role in shaping the gold market.
The report said that gold was the best performing asset class in India in 2024. It has given 21 percent return on an annual basis.
There has been strong investment in gold in Indian markets.
In 2024, the Gold ETF invested Rs 112 billion in the country and gold holding increased by 15 tonnes, causing the total gold holding to increase to 57.8 tonnes at the end of the year.
The report said that there is a strong demand from both retail and institutional investors.
The Reserve Bank of India (RBI) continued the purchase of gold in 2024 as well. Last year, the central bank bought 72.6 tonnes of gold, due to which the country’s gold reserve has increased to 876 tonnes.
It was the seventh consecutive year, when the RBI has been a pure gold buyer of gold. Gold holds 10.6 percent in India’s foreign exchange reserves.
More gold prices affect the demand for jewelery, while investment in gold bars and coins is increasing.
According to Motilal Oswal’s report, although the demand was low due to higher prices in 2024, it has gradually improved in mid-January due to shopping in the wedding season.
The report on silver states that there has been a steady decrease in supply in the last four years and the demand has been higher than the supply, which has supported silver prices.
-IANS
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