Buy on dips, temper return expectations after strong runup

Goldman Sachs expects gold to reach $3,150 per ounce in the international market by December 2025, up around 19.1 percent from its current level of $2,645, according to a recent report in Business Standard.

- SANJAY KUMAR SINGH & KARTHIK JEROME

Goldman Sachs expects gold to reach $3,150 per ounce in the international market by December 2025, up around 19.1 percent from its current level of $2,645, according to a recent report in Business Standard. Domestically, gold is trading at ₹76,018 per 10 grams after delivering a remarkable 21.9 percent return in the past year. The question is whether it can replicate this performance in the year ahead.

Central bank buying may persist Several factors continue to support gold demand. "The main drivers of this rally have been central bank buying and physical demand, not investment or speculative flows," says Vikram Dhawan, head commodities and fund manager, Nippon India Mutual Fund. Robust demand from Chinese retail investors has been a significant contributor.