Will Gold Prices Reach $3,600 Per Ounce by Year-End Amidst Geopolitical Tensions?
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Synopsis
As geopolitical tensions rise and macroeconomic challenges persist, gold prices are projected to soar to $3,600 per ounce by the end of 2025. This report explores the factors driving this surge, including strong ETF inflows and the evolving landscape of gold investment.
Key Takeaways
- The gold prices are projected to reach $3,600 per ounce by the end of 2025.
- Geopolitical tensions and macroeconomic challenges are key drivers.
- Gold's role as a reliable investment is underscored by its historical performance.
- Strong ETF inflows and increased retail participation are significant factors.
- Gold remains a valuable hedge against inflation and market volatility.
New Delhi, Aug 19 (NationPress) A recent report indicates that gold prices are projected to stay high in the latter half of 2025, driven by macroeconomic challenges and geopolitical tensions. According to the analysis from trading and investment platform Ventura Securities, Comex Gold is anticipated to hit $3,600 per ounce by year-end, eclipsing the previous record of $3,534.10 reached on August 7 this year.
This price surge is expected to be fueled by significant ETF inflows, consistent central bank purchases, and strong retail engagement in India’s gold investment sector, the platform noted.
Shifts in investment habits, including the rise of Gen Z investors, fractional ownership models, and the influence of social media and fintech, are transforming traditional jewellery ownership into technology-driven investment avenues.
The report also highlights that gold has delivered positive annual returns in 14 of the last 20 years, affirming its role as a dependable store of value and hedge against inflation.
“The strategic relevance of gold in investment portfolios has grown due to sluggish global growth, policy uncertainties, and escalating geopolitical risks. With ongoing inflationary pressures, a weakening US dollar, and expected US Fed rate cuts, we foresee consistent upward potential for gold prices through the rest of 2025,” stated NS Ramaswamy, Head of Commodities at Ventura.
As of June 30, 2025, India’s gold ETF holdings increased by 42 percent year-on-year to 66.68 tonnes, with assets under management soaring by 88 percent to Rs 64,777 crore. Furthermore, the number of investor accounts surged by 41 percent to 76.54 lakh.
Over the past three years, gold has averaged an annual return of 23 percent, significantly outperforming the Nifty 50's 11 percent. In these unpredictable market conditions, gold's negative correlation with equities has offered effective diversification, minimizing portfolio losses during downturns while capitalizing on upward trends.
Point of View
It is essential to recognize the ongoing significance of gold in investment portfolios. The current market dynamics, influenced by geopolitical tensions and macroeconomic uncertainties, highlight gold's role as a reliable asset. Our commitment remains to provide accurate and insightful analysis that empowers our audience to make informed financial decisions.
NationPress
19/08/2025
Frequently Asked Questions
What factors are driving the increase in gold prices?
The increase in gold prices is primarily driven by geopolitical tensions, macroeconomic challenges, strong ETF inflows, stable central bank purchases, and robust retail participation in gold markets.
How have gold ETFs performed recently?
India's gold ETF holdings rose by 42% year-on-year, indicating strong investor interest and growing assets under management.
Is gold a reliable investment?
Yes, gold has shown positive returns in 14 of the last 20 years, making it a dependable store of value and effective hedge against inflation.
