New Delhi, April 30
Gold prices could climb to $3,300 per ounce in 2025, driven by concerns over slowing economic growth in the US, increasing geopolitical tensions, and rising fiscal deficits, a new report said on Wednesday.
This has led to renewed interest in gold as a safe investment option, especially as equity markets see corrections, as per a report by Capitalmind Financial Services Private Limited.
The report highlights that gold has proven to be a strong and reliable asset for Indian investors over the long term.
Despite its price volatility in global markets, gold has consistently delivered positive returns in Indian rupee (INR) terms.
In fact, the study points out that gold has never had a negative decade in INR, while it faced two decades of negative returns in US dollar (USD) terms.
Anoop Vijaykumar, Head of Research at Capitalmind, said that gold plays a dual role. It acts as a store of value over the long run while also being a volatile asset prone to short-term ups and downs.
For Indian investors, however, the depreciation of the rupee against the dollar has made gold a relatively safer bet.
“While gold may not generate cash flows or compound like equities, its low correlation with other assets makes it essential for diversification,” he added.