Gold ends 2024 with 26% returns. What's ahead for yellow metal in 2025?
Gold delivered one of its best performances in a decade in 2024 recording an annual growth of 26%, fuelled by central bank purchases, geopolitical tensions, and expectations of accommodative monetary policies by global central banks, including the Reserve Bank of India (RBI).
The yellow metal breached the Rs 80,000 per 10 gm mark this year, witnessing a strong rally before hitting a Fed wall. The last reported price was Rs 76,469 on Tuesday around 2 pm, nearly 5% lower from its lifetime peak of Rs 80,282 on the MCX.
“The performance of gold and silver in 2024 has underscored their importance as strategic assets in a well-balanced investment portfolio. With expectations of moderating inflation, geopolitical risks, and shifts in monetary policy, both metals are poised to remain resilient in 2025. Investors should view gold and silver not merely as short-term speculative assets but as long-term wealth preservation tools and strategic hedges against uncertainty," said Narinder Wadhwa, Managing Director & CEO at SKI Capital.
Wadhwa underscored silver's 2024 performance to be even better than its shinier peer with prices witnessing a substantial rise of nearly 42%. “Starting the year at approximately Rs 70,000 per kilogram, silver crossed the psychological barrier of Rs 1 lakh per kilogram, driven by robust industrial demand, especially in solar energy and electric vehicle (EV) technologies, along with its historical appeal as a store of value,” he said.
The buoyancy in bullion markets was further supported by heavy
