Gold's Unprecedented Surge in 2024

In an extraordinary year for gold, prices soared past Rs 80,000 per 10 grams in the domestic market, marking a 26% growth in 2024. This remarkable increase was fueled by global political tensions, anticipated reductions in US interest rates, and vigorous central bank purchasing activities.

Looking Ahead to 2025

Experts are advising investors to keep gold as a pivotal part of their investment portfolios in 2025. Despite expecting more modest gains compared to the previous year, they recommend leveraging price dips as buying opportunities. The upcoming US leadership transition to Donald Trump adds another layer of consideration for the year ahead.

Strategic Investment Advice

Chirag Mehta, CIO at Quantum Mutual Fund, suggests utilizing short-term price corrections as buying opportunities and advocates for a gradual accumulation of gold over several months. He anticipates that the changes planned by the new US administration could be inflationary, potentially leading to reduced interest rates to support growth, which would be bullish for gold.

Gold's Consistent Performance

Gold has demonstrated strong performance with 14% growth in 2023 and 12% in 2022, outperforming numerous asset classes over three years. Sachin Jain, the regional CEO of India for the World Gold Council, highlights 2024 as a golden year for gold, emphasizing its role as a safe haven, portfolio diversifier, and source of returns.