Gold Prices: Gold has turned out to be one of the best-performing assets in 2025. On the Multi Commodity Exchange (MCX), gold has delivered over 30% return so far this year. Silver, another high-risk asset, has also performed well, gaining nearly 35%.
In comparison, traditional market indices have seen limited growth:
- Nifty 50 gained only 4.65%
- BSE Sensex delivered about 3.75%
Among Sensex stocks, Reliance Industries gave more than 14% return, and HDFC Bank shares rose by 12.50%. But despite these gains, gold and silver clearly outperformed all other asset classes.
Key Takeaways
- Gold gave over 30% return on MCX in 2025
- Silver rose nearly 35% this year
- Sensex & Nifty offered limited growth compared to precious metals
- Gold prices rose from ₹32,000 to ₹97,800 per 10 grams in 6 years
- Experts predict gold may reach up to ₹2.25 lakh per 10 grams in 5 years
- Factors like geopolitical tensions, US debt, and central bank buying drive gold prices
Gold and Silver Lead Over the Long Term Too
Over the past six years, gold prices on MCX have jumped from ₹32,000 to ₹97,800 per 10 grams — an impressive rise of over 200%. Silver has also followed a similar upward trend, outperforming most other asset classes.
Will Gold Remain Strong in the Coming Years?
According to commodity experts, gold will likely remain one of the top-performing risky assets in the years ahead. Even during economic downturns, gold is expected to provide at least 40% returns over the next five years. In a bullish market, prices could even rise by 125%.
Why Are Gold Prices Rising So Fast?
Santosh Meena, Head of Research at Swastika Investmart, explains several factors behind the ongoing gold rally:
- Emotional and Economic Value in India
Gold has always held sentimental value in Indian culture, along with being a strong financial asset. - Strategic Asset for Central Banks
In recent years, gold has become a strategic reserve asset for central banks around the world. - Aftermath of the Russia-Ukraine War
When Russia’s foreign reserves were frozen, many countries saw the risks of over-relying on the US Dollar. This triggered more gold buying. - Rising Geopolitical and Trade Tensions
Global uncertainties have increased, and central banks now consider gold a safe-haven asset, driving demand higher.
Declining Trust in the US Dollar
One of the biggest reasons behind the gold rally is the falling confidence in the US Dollar.
- Many central banks are replacing dollar reserves with gold.
- The US government’s growing debt is raising concerns over the long-term stability of the dollar.
- Gold is emerging as a reliable store of value amid global uncertainty.
- Political instability around the world is pushing both individuals and institutions to invest in gold.
Why Did Gold Give 200% Return in the Past 6 Years?
According to Sugandha Sachdeva, Founder of SS WealthStreet, gold has given nearly 200% return between 2019 and 2025.
Key reasons include:
- The COVID-19 pandemic and resulting economic slowdown
- Loose monetary policies and low-interest rates globally
- Massive liquidity injection by central banks
- Geopolitical tensions and financial market uncertainty
During the pandemic:
- Central banks cut interest rates to near zero
- Stimulus packages added money to the economy
- Fears of inflation and currency depreciation grew
This created negative real interest rates, increasing gold’s appeal as a safe store of value.
Geopolitical Events That Boosted Gold
Sugandha Sachdeva highlighted several key global events that helped push gold to record highs:
| Event | Impact on Gold |
|---|---|
| Russia-Ukraine War (Feb 2022) | Increased demand for safe assets |
| US Banking Crisis (SVB, Credit Suisse – 2023) | Weakened trust in traditional finance |
| Middle East Conflict (Oct 2023) | Raised geopolitical risks |
| US-China Trade War (2025) | Global market uncertainty |
| Record Gold Buying by Central Banks | Reduced reliance on the dollar |
| Shift Away from Dollar | Gold seen as stable alternative |
These factors helped gold hit a record ₹1,00,178 per 10 grams in 2025, and they may continue to support gold prices going forward.
Will Gold’s Rally Continue?
Sugandha Sachdeva believes that the global demand for gold will stay strong, especially as central banks increase their holdings.
- Today, about 20% of central bank reserves are in gold
- The US Dollar’s share in global reserves has dropped from 73% (2001) to 58%
- Countries are moving toward a multi-currency global system, weakening the dollar’s dominance
- Rising US debt and currency market volatility make gold more attractive
- In countries like China, even the insurance sector is now adding gold to their portfolios
- Inflows into Gold ETFs and a weaker rupee are also pushing prices higher
Is This the Right Time to Buy Gold?
According to Sachdeva, gold will continue to serve as a store of value and a portfolio diversifier in the long term.
She advises investors to:
- Buy gold gradually during price corrections
- Plan a strategic gold allocation for the next five years
- Focus on long-term investment goals rather than short-term profits
Gold Price Prediction for the Next 5 Years
| Expert | Prediction |
|---|---|
| Sugandha Sachdeva | Gold may rise to ₹1,35,000 – ₹1,40,000 per 10 grams in 5 years. Short-term dips possible if the dollar strengthens, but strong support around ₹72,000–₹75,000. |
| Santosh Meena (Swastika Investmart) | If current trends continue, gold may reach up to ₹2,25,000 per 10 grams in the next five years. Gold has already delivered 18% annual compounded returns in the past five years. |
They both agree that geopolitical tensions, rising debt, and central bank buying will keep gold strong in the coming years.
Conclusion
Gold has not only outshined other asset classes in 2025 but has also proven to be a safe, stable, and rewarding investment over the long term. With increasing global risks, declining faith in the dollar, and rising demand from central banks and investors, gold remains a valuable asset for portfolio diversification.
For long-term investors, this could be a golden opportunity to start or increase their allocation to gold — gradually, strategically, and patiently.
