THE TIMELESS VALUE OF GOLD

For thousands of years Gold has carried special significance and intrinsic value. It is universally valued across all cultures. Particularly in India, it has assumed unique importance since mythological times and it continues to enjoy the same status even today. It is considered as precious metal, thanks to its peculiar properties, purity, historical significance, aesthetic appeal, and most importantly, the scarcity. As such it has remained to be the symbol of wealth and prosperity for thousands of years.

Naturally the prices of gold fluctuate day in day out and it is extremely challenging to predict the price of gold in 2025. Here are some important factors that influence the prices of gold.

• Global-economic scenario : Factors like inflation and recession as well as economic growth impact the gold prices. For instance in case of high inflation the investment in gold is done as a hedge against devaluation of currency. Resultantly the prices are on the rise.
• Rate of interest : Due to its inverse connection with the interest rates, fluctuation in the prices is observed and we notice the decrease in cost of holding.
• Geopolitical impact : Gold prices witness lot up upheavals due to political instability, wars, economic sanctions and trade conflicts. This can culminate into increase in demand for safe-heaven assets such as gold. As a result, the prices go up.
• Position of the US Dollar : The gold is priced in the US dollars. As such its price inversely correlates with the position or strength of the US dollar. If the dollar gets weaker it supports higher gold prices.
• Demand & supply : In countries in India the demand of gold often surges during the festive season and during the wedding events. However, the supply of gold largely depends on the mining output and Central Bank purchases. Central Banks across the world, particularly the Federal Reserve play vital role in the price of gold because of their monetary policies and gold holdings. If the demand is more in comparison to the supply the prices witness heavy rise.

In a few days from now the New Year 2025 will arrive and the geo-political scenario is still uncertain. Under these circumstances, lot of market experts and analysts have predicted that the gold prices will see a good rise. However, the experts have different opinions as to how high it could go in the New Year.

A few analysts envisage that the gold price would witness high increase if the inflation continues to remain high and interest rates are down. If the geopolitical scenario still remains uncertain and if the tensions persist the prices could go up even higher. On the contrary, if the stability gets restored and geopolitical situation eases up and if the Central Banks revise their monetary policy the prices of gold could see the downward trend and there would not be heavy fluctuation in the prices.

NOTE : These observations and predictions are based on the prevailing market scenario and geopolitical landscape. However, the buyers and investors are requested to make their own assessment or study before making the investment in gold.