Gold Surges 30% in 2025: Should You Invest Or Wait For A Correction?

With gold prices soaring and uncertainty dominating headlines, many investors are asking if this is the right time to take the plunge or sit tight

- Kundan Kishore

Gold prices are on a record-breaking spree, rewriting history with every surge. Since February 2024, gold prices have been on a spectacular rally, and since the beginning of 2025, they have risen by over 30 per cent. They have also beaten equity returns over the past three years.

On January 24, 2025, the spot gold price on Multi Commodity Exchange (MCX) surpassed the psychological level of ₹80,000 per 10 gram for the first time, and by the end of March, it breached the ₹90,000 mark, clocking a gain of a little over 7 per cent in March alone. Now it is on the verge of surpassing ₹1 lakh. As on June 20, it closed at ₹98,071.

This robust performance was consistent across major currencies. Spot gold price in the international market crossed the psychological level of $3,000 per ounce on March 18, 2025, and by the beginning of May, it reached $3,392 per ounce, hovering near $3,368 per ounce as on June 20.

In the race for returns, gold has outpaced the widely-tracked indices Nifty and S&P Sensex by a significant margin in the last three years. The yellow metal has yielded 30.40 per cent returns year-to-date (YTD) as on June 20, 2025, compared to 6.21 per cent returns by India's benchmark indices Nifty.

What Is Pushing Gold Prices?

The factors that contribute to the rise in gold prices are many. Unlike other commodities, whose prices are primarily driven by demand and supply, the price of gold is influenced by a range of additional factors, such as economic downturns, interest rate trends, and geopolitical tensions. A new factor now impacting gold prices is tariffs.

Ongoing Geopolitical Tension:

After four consecutive months of positive returns, gold experienced a slowdown in May 2025, though it remained relatively flat from the April closing figure.