Gold Silver Investment: Gold prices are likely to fall in the year 2025, while silver prices may rise. This has been said in the Economic Review 2024-25 presented in Parliament on Friday. Citing the World Bank’s ‘commodity market scenario’ for October 2024, the economic review highlighted that the prices of commodities are expected to decline by 5.1 percent in 2025 and 1.7 percent in the year 2026.
The estimated decline is due to oil prices, but it has reduced due to increase in natural gas prices and a stable point of view for metals and agricultural raw materials.
The economic review states that in precious metals, gold prices are expected to fall, while silver prices may rise. The prices of metals and minerals are likely to fall, due to which the reason is the decrease in iron ore and zinc prices. It said, “In general, the fall in the prices of goods imported by India is positive for domestic inflation perspective.”
Meanwhile, the Economic Review states that “the global growth in uncertainty has given rise to fluctuations in the structure of foreign exchange reserves. Gold bullion holdings in the year 2024 have reached its highest level since World War II, which was mainly inspired by the accumulation of gold by central banks of the emerging market. ‘
Gold imports have increased due to increase in global prices, early procurement before festive expenses and demand for safe-compensation. ”
The review found that uncertainty in global markets has led to fluctuations in the structure of foreign exchange reserves, as central banks adjust their correspondence to reduce risks. In addition, the International Monetary Fund (IMF) has stated that the global reserve system has been constantly changing, including gradually away from dollar dominance and increasing role of non-traditional currencies.
The Economic Review suggested that the estimated decline in gold prices may affect investors’ sentiments, while the expected increase in silver prices may provide some support to the bullion market. Amidst the preparation of the upcoming financial year, the government is expected to closely monitor their impact on inflation and inflation, trade and foreign exchange reserves. India is the biggest importer of gold in the world.