Why the price of Gold keeps breaking records, understand the reason

Gold Price Prediction 2025: Gold prices are constantly rising. In such a situation, consumers and investors in India should be prepared for fluctuations and opportunities. According to a report by ICICI Bank Global Markets, due to global economic uncertainties and US tariff policy, gold prices may reach Rs 87,000 to Rs 90,000 per 10 grams in the first half of the year 2025.

According to analysts, they can rise further to Rs 96,000 per 10 grams in the second half of 2025.

Importance of gold in India is very high

Gold is not only an investment option in India but is also a part of cultural traditions. Its importance increases especially during weddings and festivals. The recent rise in gold prices has put jewelry buyers in tension. However, investment demand remains strong.

How far can gold rates go

According to a report by ICICI Bank Global Markets, local gold prices are expected to reach between Rs 87,000 per ten grams and Rs 90,000 per ten grams in the first half of 2025 and between Rs 94,000 per ten grams and Rs 96,000 per ten grams in the second half of 2025, ET reported. Reasons for rise in gold prices

The US government's plan to impose reciprocal tariffs from April 2 has created economic uncertainties. The strengthening of the Indian rupee against the US dollar has impacted local gold prices.

Gold imports also decreased

An ICICI Bank report shows that jewellery demand has been affected at this time. The rise in gold prices seems to be affecting jewellery demand, which has brought gold imports to their lowest level in the last 11 months, $2.3 billion, reflecting a decline of 14 per cent on a monthly basis and a decline of 63 per cent on an annual basis.

Investment in gold was not affected

Jewellery purchases have come down, but investment in gold remains stable, with ETFs and central banks playing an important role. According to the report, in February 2025, gold ETFs attracted investment of Rs 19.8 billion, which is higher than the average net investment of Rs 14.8 billion recorded in the last nine months.

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