BS EDIT: Gold prices soar – What’s behind the record-breaking rally?

By Business StandardPublished On Feb 24, 2025

A golden year for investors

• Gold up 11% in dollars, 13% in rupees in 2024

• 42% rise since January 2023

Why is gold surging?

• Safe-haven asset amid uncertainty

• 1,045 tonnes bought by central banks in 2023

• India holds 12% of global gold reserves

Geopolitics & gold demand

• Trade wars & inflation fears push prices up

• ‘Trump tariff’ speculation boosts central bank buying

The dollar vs gold paradox

• Gold rising despite a strong US dollar

• Inflation concerns outweigh currency strength

What’s next for gold?

• Supply constraints may drive prices higher

• Gold ETFs & mining stocks see big inflows

Risks & rewards

• Jewellers & lenders face inventory & loan risks

• Gold’s value depends on economic conditions