Amid escalating US-China trade tensions and recession fears, gold prices in India could reach Rs 1.30 lakh per 10 grams. Goldman Sachs forecasts gold at $4,500 an ounce by year's end. Increased investment from individuals and central banks, along with rising bond yields, are key factors driving this surge.
Concerns about a recession have risen because of the US tariff policy. Consequently, people are investing more in gold. Goldman Sachs has forecasted that gold could hit $4,500 per ounce in the international market this year due to recession fears and the escalating trade war between the US and China.
As per the global rate, the cost of 10 grams of gold in India can reach Rs 1.30 lakh. Moreover, the financial firm mentioned that under typical conditions, gold prices might increase to $3,700 per ounce by the end of 2025.
Goldman Sachs has raised its gold price target for the end of 2025 for the third time. Previously, the international bank had set the gold price target at $3,300 per ounce. The firm noted that the demand for gold has surged as a hedge against recession amid growing concerns about the US economy due to the intensifying US-China trade war.
Gold prices surged by 6.5 percent last week, marking the best weekly performance for gold since the Covid-19 pandemic. This increase is attributed to the global instability triggered by President Donald Trump's reciprocal tariffs.
This is providing support for gold prices. According to market analysts, the risks of a recession, increasing bond yields, and worries about financial instability are drawing investors to gold. In addition to individual investors, there is also growing demand for gold from institutions and central banks, which has bolstered prices.
The initial quarter of this year experienced the greatest influx into gold-backed exchange-traded funds (ETFs) since 2020. Central banks, particularly in emerging markets, are increasing their gold purchases to lessen their reliance on the dollar. As per the India Bullion and Jewelers Association, the price of 10 grams of 24-carat gold has surged to Rs 93,353.