Gold Prices Expected to Reach ₹1.63 Lakh per 10 Grams by Year-End
Gold Price Forecast
According to Goldman Sachs, gold prices are projected to rise to ₹1.63 lakh per 10 grams by the end of this year. The American bank attributes this forecast to increased gold purchases by central banks worldwide and expectations of a decrease in interest rates in the United States. However, they also predict a short-term decline in gold prices.
Potential Increase in Global Gold Reserves
Goldman Sachs noted that geopolitical tensions and declines in stock and bond markets could impact gold prices in the short term. A survey conducted among 23 central banks revealed that 70% believe there will be an increase in global gold reserves over the next 12 months, while only 25% expect no change.
The bank anticipates that the Federal Reserve may reduce interest rates by 0.50%, which would support gold prices. Typically, a decrease in interest rates leads to increased demand for gold, positively affecting its price. However, on April 29, the Federal Reserve did not make any changes to interest rates.
Gold Prices Rise on April 30
On April 30, gold prices surged both domestically and internationally. In evening trading on the commodity exchange MCX, gold futures rose by 1.69%, reaching ₹1,51,566 per 10 grams. Internationally, gold increased by 1.80%, trading at $4,627 per ounce, while silver saw a jump of 3.22%.
Short-Term Pressure on Gold Prices
Geopolitical tensions have influenced gold prices, yet interest in gold as a safe investment remains strong. Research analyst Gaurav Garg from Lemon Markets indicated that buying activity has affected gold prices, although there may be short-term pressure.
Investment Demand for Gold Surpasses Jewelry Demand
On April 29, the World Gold Council reported that during the March quarter, investment interest in gold outpaced jewelry purchases in India for the first time. Sachin Jain, CEO of WGC India Operations, stated, "For the first time, investment demand exceeded jewelry demand."
10% Increase in Gold Consumption in March Quarter
In the March quarter, gold investment demand rose by 52% compared to the same period last year. Conversely, jewelry demand fell by 19.5%, totaling 66 tons. Overall, gold consumption in India increased by 10.2% to 151 tons during this period. Additionally, investments in gold ETFs surged by 186% compared to the previous year. Since the beginning of 2025, gold prices have doubled.