Gold prices to decline, silver to rise in 2025: Economic Survey

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Gold prices are expected to diminution successful 2025 portion metallic prices whitethorn increase, according to Economic Survey 2024-25 tabled successful Parliament connected Friday(January 31, 2025).

Citing the World Bank's Commodity Markets Outlook for October 2024, the economical survey highlighted that commodity prices are projected to alteration 5.1% successful 2025 and 1.7% successful 2026.

The projected declines are led by lipid prices but tempered by terms increases for earthy state and a unchangeable outlook for metals and cultivation earthy materials.

Among precious metals, golden prices are expected to alteration portion metallic prices whitethorn increase. Prices for metals and minerals are expected to decline, chiefly owed to a alteration successful robust ore and zinc prices, the economical survey said.

"In general, the downward inclination question successful prices of commodities imported by India is simply a affirmative for the home ostentation outlook," it added.

Meanwhile, the survey said "a planetary emergence successful uncertainty has led to fluctuations successful the creation of overseas speech reserves. CY24 saw golden bullion holdings nearing their highest level since World War II, which was mostly driven by an accumulation of golden by emerging marketplace cardinal banks".

Gold imports person increased, influenced by higher planetary prices, aboriginal purchases up of festive spending, and request for safe-haven assets.

The survey observed that uncertainty successful planetary markets has led to fluctuations successful the creation of overseas speech reserves, arsenic cardinal banks set their holdings to mitigate risks.

Further, the International Monetary Fund (IMF) has noted dependable changes are underway successful the planetary reserve system, including a gradual question distant from dollar dominance and a rising relation of non-traditional currencies, it said.

The survey suggested that portion the projected diminution successful golden prices whitethorn impact capitalist sentiment, the expected emergence successful metallic prices could supply immoderate enactment to the bullion market.

As the authorities prepares for the upcoming fiscal year, it expects to intimately show terms movements of the bullion and their interaction connected inflation, trade, and overseas speech reserves.

India, 1 of the world's largest importers of gold, has traditionally witnessed beardown request for the metal, peculiarly during the festival and wedding seasons.

Published - January 31, 2025 04:56 p.m. IST