At the yearend Colin Shah, MD, Kama Jewelry presented those perspectives on, Gold performance in December 2024 basis World Gold Council Report. He said that, “The robust investment in gold in the month of December 2024 depicts that gold continues to hold a higher preference in the buyers’ investment portfolio.

This is supported by the growing inflows in Indian gold ETFs which added 14.5 trillion year-to-date. However, the fluctuations in gold prices acted as a deterrent to jewellery demand, keeping the buyers at fence. In the domestic market, gold prices saw a dip of 3% from October’s peak on the back of global trends, where it fluctuated between INR 73,477 and INR 78,66910 gm since late October.

However, by mid-December, domestic gold prices stood at INR 77,18510 gm. Nevertheless, the long term appeal of the yellow metal as a safe-haven and preferred investment asset class along with positive outlook on prices boosted the sales of gold bars and coins, indicating steady growth for physical investment demand.

Moving ahead, this investment demand is expected to remain strong. However, due to the impending inauspicious period for gold purchases, the demand for jewellery may witness short-term pressure. But, with the current price dynamics, our long-term view of gold remains positive, where it may touch levels of $3000, with bouts of volatility and price correction.”

While , in the row, at the Market Outlook 2025, Shripal Shah, MD & CEO, Kotak Securities, suggest that, looking ahead to 2025, several factors suggest continued strength in gold prices as Central Bank buying is expected to persist, driven by de-dollarisation efforts and geopolitical risks. Moreover, resilient demand from Asian markets, particularly in China and India, will further support prices.

Additionally, evolving political scenarios, including significant elections and conflicts in the Middle East, are likely to sustain gold’s safe-haven demand. Gold’s role as a hedge against inflation, political instability, and economic uncertainty positions it well for the coming year.

However, gold may face headwinds in 2025 as President-elect Trump’s policies of tariffs and tax cuts are seen as inflationary, and hence may prompt the Federal Reserve’s to take a measured approach to interest rate cuts. Lower tax rates would also increase the government debt, while tariffs may lead to supply disruptions and hence higher inflation, which would limit the pace of the Federal Reserve interest rates next year.

Already, markets have trimmed their expectations for Fed Funds rates between 3.75% and 4.00% that comes by December 2025, compared to between 3% and 4% as per FOMC September projections. This has led to sharp volatility in gold prices as sentiment shifted post Trump’s decisive victory and money managers decreased their bullish gold bets by more than 66K net-long positions or lower by 23% from the year highs.

Moreover, higher growth expectations, fiscal deficits, and inflationary pressures from Trump trade policies, could boost dollar and spell trouble for gold prices. Overall, gold may benefit from safe haven bids stemming from escalating Russia-Ukraine conflict, though pace of further gains may be determined by incoming US data and Trump’s trade policy.