Local Gold Prices Eye Significant Rise in 2025 Amid Global Trends

According to a recent report by ICICI Bank Global Markets, local gold prices are set to maintain an upward trend in the latter half of 2025. Though currently ranging between Rs 96,500 and Rs 98,500 per 10 grams, prices might edge closer toward the Rs 1,00,000 mark, a psychological barrier for investors.

Unlike global price trends, domestic gold prices saw a slight rise of 0.6 percent in June amid a minor depreciation of the Indian rupee by 0.2 percent. The report highlights weakening demand due to high prices, evident in the decline in gold imports, which fell from USD 3.1 billion to USD 2.5 billion month-over-month.

Despite these trends, the investment demand remains robust, supported by a net ETF inflow of Rs 2.92 billion in May, breaking a two-month trend of outflows. Globally, ETF holdings in gold increased from 930 tonnes to 948 tonnes in June, reflecting continued investment interest.

The recent easing of geopolitical tensions between Israel and Iran, along with the U.S. establishing new trade agreements, has mitigated some risk factors, potentially limiting sharp increases in gold prices. Agreements with nations such as the UK, Vietnam, Japan, India, and the EU signal a decrease in trade conflicts

that tempering expectations of a gold price surge, the ICICI report indicates investment demand is sustaining current price levels while jewellery demand softens.

(With inputs from agencies.)