Gold became expensive in the year 2024 with a tremendous increase of 26.6 percent. If we look at the international trend, the S&P 500 saw a growth of 23 percent last year. On Halloween, October 31, gold touched an all-time record of $ 2,790 an ounce and at the time of writing it was trading at $ 2,642. According to the Daily Mail news, financial experts believe that stock sell-off, inflation or geopolitical shocks could lead to another surge for gold in 2025. According to Adrian Ash, research director at BullionVault, the price increase achieved in 2024 exceeded the forecasts of financial analysts.

The price of gold increased much more than expected

According to the news, the price of gold increased by 23 percent on an average annual basis this year, averaging $2,386 per troy ounce, while professional analysts had expected an increase of only 6.1 percent. Ash says there are many advantages to holding gold in a balanced portfolio. The precious metal is a store of wealth and a hedge against inflation, a useful way to diversify and a safe haven asset during financial and political turmoil. However, you need to have a clear vision, as gold does not generate any income and the price can be volatile.

What local experts say

Yogesh Singhal, chairman of the Delhi-based All Bullion and Jewelers Association, says that we are expecting a 10 percent correction in the price of gold in the coming time. However, it will largely depend on geopolitical tensions and the trend of the international market. On a question about the demand for gold in India, he said that the demand is expected to be less this year compared to last year, because the prices are high. For investors, Singhal has said that they should buy gold on every fall.

Who affects the price of gold

The moves by the world's most powerful central bank, the US Federal Reserve, are key. Rate cuts, or just the prospect of them, make gold more attractive to investors because they weaken the dollar and can boost inflation. Many people like to hold gold and have a lot of money in it. There has been much speculation over the past few years that secret trading activity has also affected the price of gold. The invasion of Ukraine led to sanctions against Russia, which has the world's second-largest gold mining industry.

A stronger dollar makes gold more expensive and this can discourage all types of buyers and weigh on the price. Demand for coins, bars and jewellery, which can be seasonal. For example, the festival of Diwali is a popular time to buy gold jewellery in India, and the Lunar New Year in China is also popular for all types of physical gold. This also impacts gold.