Gold prices have delivered stellar returns to investors in 2025. The precious yellow metal on MCX has ascended over 30 per cent, other risky assets like silver surged nearly 35%, and the Nifty 50 index has risen around 4.65 per cent. The BSE Sensex has given around 3.75 per cent, while some Sensex heavyweights like Reliance share price have generated a little over 14 per cent in 2025. Nifty 50 heavyweight HDFC Bank shares have surged around 12.50 per cent. So, gold and silver have outshone other risky assets by a massive margin in YTD. The precious bullions have dominated the market in the long term, too. In six years, the MCX gold rate has risen from around ₹32,000 per 10 gm (in May 2019) to around ₹97,800 per 10 gm, delivering a rise of over 200 per cent.
According to commodity market experts, gold prices are expected to dominate the list of risky assets. The bears may deliver at least 40 per cent in the next five years, whereas the bulls may become expensive by over 125 per cent.
Triggers for gold price rally
Speaking on the gold price rally in recent years, Santosh Meena, Head of Research at Swastika Investmart, said, “Gold has long held deep emotional and financial value in Indian households. It has also gained prominence as a strategic asset among global central banks in recent years. This shift has accelerated over the past two years, particularly after the Russia-Ukraine conflict, which led to the freezing of a significant portion of Russia’s foreign exchange reserves. As geopolitical tensions rise and tariff disputes continue, central banks increasingly turn to gold as a safe-haven asset, contributing to a steady rise in its price.”
Santosh Meena of Swastika Inestmart said several key factors drive this renewed interest in gold. One of the most notable is the weakening confidence in the US dollar. Many central banks are diversifying their reserves to reduce dependency on the dollar, and gold is emerging as the preferred alternative. Another major driver is the rising US debt-to-GDP ratio, which raises concerns about the long-term stability of the dollar and further enhances gold’s appeal as a store of value. The overall geopolitical instability climate also pushes institutional and retail investors toward gold as a reliable hedge against uncertainty.
On why gold prices have risen in the last six years, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Gold has delivered outstanding returns of nearly 200% over the past six years, rallying from around ₹34,200 in June 2019 to approximately ₹97,800 per 10 grams in 2025. This exceptional performance has been driven by global macroeconomic shocks, including the COVID-19 pandemic, ultra-loose monetary policies, geopolitical tensions, and heightened financial market uncertainty.”
The SS WealthStreet expert said that the outbreak of the pandemic unleashed massive economic disruption and led to unprecedented monetary and fiscal interventions. Central banks across the globe slashed…
Read More: Gold price rises 200% in six years. How expensive it may become in next 5
