As of February 28, 2025, gold prices have experienced significant fluctuations, reflecting the dynamic interplay of global economic factors. In Delhi, the price of 10 grams of 24-carat gold stands at ₹87,543, while 1 kilogram of silver is priced at ₹101,000.
On the international stage, gold is trading at $2,874.69 per ounce, marking a 2% decline over the past week—the most substantial weekly drop in over three months. This downturn is largely attributed to a strengthening U.S. dollar and investor anticipation of upcoming U.S. inflation data, which could influence the Federal Reserve's monetary policy decisions.
Despite this recent dip, the broader trend for gold remains bullish. Over the past 12 months, gold has delivered a remarkable 42% return, outperforming the S&P 500 index. Analysts attribute this surge to various factors, including geopolitical tensions, central banks' increased gold purchases for reserve diversification, and robust retail demand. Notably, China's encouragement for insurance funds and households to invest in gold, amid challenges in the property market, has further bolstered demand.
Looking ahead, Goldman Sachs has revised its year-end 2025 gold price forecast upward to $3,100 per ounce, up from the previous estimate of $2,890. This adjustment reflects sustained central bank demand and expectations of a gradual boost to exchange-traded fund (ETF) holdings as interest rates decline.
For investors seeking exposure to gold, options include gold ETFs and mining stocks. Additionally, silver, which often trades in tandem with gold, presents alternative investment opportunities with potential for growth.
In summary, while short-term fluctuations are evident, the long-term outlook for gold prices remains positive, driven by a confluence of economic, geopolitical, and market-specific factors.
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