Gold prices surged to a record high of $3,106 per ounce on Monday as investors flocked to buy the safe-haven asset due to uncertainty over US reciprocal tariff and global economic concerns.
The yellow metal has gained over 18% this year, driven by strong retail investor demand.
Major banks, including Goldman Sachs, Bank of America (BofA), and UBS, raised their gold price targets this month.
A BofA Global Research report predicts gold could reach $3,500 per ounce in the next 18 months if non-commercial purchases rise by 10%.
The report also suggests that central banks could increase gold holdings from 10% to over 30% to enhance portfolio efficiency.
Gold has emerged as one of India’s top-performing asset classes in 2024, delivering a 21% year-on-year return.
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Indian investors showed strong interest in gold ETFs, leading to record inflows of ₹112 billion.
These inflows added 15 tonnes to holdings, bringing the total to 57.8 tonnes by year-end, according to Motilal Oswal Private Wealth.
The Reserve Bank of India (RBI) also boosted its gold reserves. It added 72.6 tonnes in 2024, increasing total holdings to 876 tonnes.
This marks the seventh straight year of RBI’s gold accumulation, with gold now comprising 10.6% of its forex reserves.
High prices impacted jewellery demand, but investment in bars and coins remained strong.
Experts suggest gold as a long-term asset while recommending silver for tactical allocations.
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