Tariff Uncertainties Forecast to Keep Gold Prices in India Between ₹87,000-₹90,000 for First Half of 2025: Report
New Delhi [India], March 29 (ANI): Uncertainties regarding U.S. tariffs may cause gold prices to rise to between Rs 87,000 and Rs 90,000 during the first six months of 2025 (from January to June), as stated in a report from ICICI Bank Global Markets.
At present, public information indicates that the price of gold is approximately Rs 83,410 per 10 grams for 22-carat and Rs 90,990 per 10 grams for 24-carat varieties.
The report further stated that the ambiguities caused by the tariffs will maintain the investment-driven demand for gold.
Starting from April 2, the Trump administration plans to enforce reciprocal tariffs on trade partners under what they call the "Fair and Reciprocal Tariff Plan."
In India, the price of gold increased by 4 percent over the last month, aligning with international market movements and a strengthening of the rupee by 2 percent relative to the U.S. dollar.
"In the future, local gold prices are anticipated to show an upward trend, ranging from INR 87,000 to Rs 90,000 for ten grams during the first half of 2025 and then shifting to a range between Rs 94,000 to Rs 96,000 for ten grams in the second half of 2025," the report stated.
The report predicts that gold prices in international markets will likely fall between $3200 and $3400 per ounce by December 2025.
Additionally, the US Federal Reserve The possibility of reducing interest rates in 2025 and 2026 might enhance gold’s appeal, since decreased US yields could boost the demand for gold, the report noted.
According to the report, central banks might also sustainably increase their reserve holdings by acquiring more gold, potentially maintaining stable pricing over an extended period.
Higher gold prices seem to be dampening jewelry demand, causing gold imports to drop to their lowest point over the last eleven months, totaling $2.3 billion. This represents a 14% decrease from the previous month and a significant 63% drop compared to the same period last year. The report suggests that demand could recover due to seasonal purchases typically made during festivals,” it continued.
Nevertheless, investments in gold funds for local ETFs continue to be quite strong, as observed globally. Gold Council (WGC) has reported. Gold In February 2025, ETFs saw inflows amounting to Rs 19.8 billion, which exceeded the average monthly net inflow of Rs 14.8 billion observed over the previous nine months. (ANI)