Gold prices to decline, silver to rise in 2025: Economic Survey
The Hindu
Among precious metals, gold prices are expected to decrease while silver prices may increase. Prices for metals and minerals are expected to decline, primarily due to a decrease in iron ore and zinc prices, the economic survey said
Gold prices are expected to decline in 2025 while silver prices may increase, according to Economic Survey 2024-25 tabled in Parliament on Friday(January 31, 2025).
Citing the World Bank's Commodity Markets Outlook for October 2024, the economic survey highlighted that commodity prices are projected to decrease 5.1% in 2025 and 1.7% in 2026.
The projected declines are led by oil prices but tempered by price increases for natural gas and a stable outlook for metals and agricultural raw materials.
Among precious metals, gold prices are expected to decrease while silver prices may increase. Prices for metals and minerals are expected to decline, primarily due to a decrease in iron ore and zinc prices, the economic survey said.
"In general, the downward trend movement in prices of commodities imported by India is a positive for the domestic inflation outlook," it added.
Meanwhile, the survey said "a global rise in uncertainty has led to fluctuations in the composition of foreign exchange reserves. CY24 saw gold bullion holdings nearing their highest level since World War II, which was largely driven by an accumulation of gold by emerging market central banks".
Gold imports have increased, influenced by higher global prices, early purchases ahead of festive spending, and demand for safe-haven assets.