Gold Fever Reloaded: Can the Yellow Metal Break All-Time Highs Again?

India’s gold market is gearing up for a bullish second half of 2025, with domestic prices expected to climb toward the symbolic ₹1,00,000 per 10 grams mark. According to ICICI Bank Global Markets, the yellow metal is trading with an “upside bias,” driven by strong investment demand despite softening jewellery sales and easing global tensions.

 

Key Highlights:

 

- Price Outlook
 

- Gold is currently hovering between ₹96,500–₹98,500 per 10 grams.
 

- Analysts project a move toward ₹1 lakh in H2 2025, supported by rupee depreciation and resilient investor appetite.

 

- Investment Demand Heats Up
 

- May 2025 saw a net inflow of ₹2.92 billion into gold ETFs, reversing two months of outflows.
 

- SPDR Gold ETF holdings rose from 930 to 948 tonnes globally, signaling sustained bullish sentiment.

 

- Jewellery Demand Cools
 

- Elevated prices have dampened retail jewellery purchases.
 

- Gold imports dropped from $3.1 billion in April to $2.5 billion in May, reflecting demand fatigue.

 

- Geopolitical Calm, Market Confidence
 

- A ceasefire between Israel and Iran and progress on US-China trade talks have eased safe-haven buying.
 

- Yet, gold remains up 28% year-to-date, underscoring its resilience as a portfolio hedge.

 

- Speculative Activity Rises
 

- Net long positions in gold futures rose by 13,000 lots, indicating traders are betting on further upside.

 

With inflation fears easing but investment flows holding strong, gold’s glitter isn’t fading—it’s just getting recalibrated for a quieter, more strategic rally.

 

Source: Zee Business, The Hindu Business Line, Economic Times