According to a forecast by Motilal Oswal Financial Services, gold prices are expected to rise to around USD 4,500 per ounce in international markets. This is largely due to strong demand from Asia and continued buying by central banks.
The price of gold has gone up more than 50 per cent in 2025, crossing the USD 4,000 per ounce mark and setting over 35 new records this year. Ongoing geopolitical concerns, central banks diversifying their portfolios by buying around 600 tonnes of gold in the first nine months, expectations of a US Federal Reserve rate cut, and robust demand from Asian consumers are among the main reasons for the surge.
India and China are two of the countries driving both consumer and institutional buying of gold in Asia, which is now regarded as the hub of global gold demand. Prices in India reached Rs 1.20 lakh per 10 grammes, and they could go up to Rs 1.35 lakh in the medium term if the USD-INR exchange rate remains at 89. Seasonal demand ahead of Diwali and cultural preferences have also supported gold’s rise, with investors remaining optimistic and continuing to buy even at record highs.
The analysis notes that any price corrections are expected to be short-term, as the underlying fundamentals remain strong. Silver is also expected to gain, with estimates placing its price at USD 75 per ounce globally, driven by strong industrial demand and supply shortages |
