Economic Survey 2024-25: Gold Prices Set to Drop, Silver on the Rise

The Economic Survey 2024-25 predicts a decline in gold prices and a rise in silver prices in 2025. This is influenced by a decrease in global commodity prices, particularly oil. The report also notes changes in foreign exchange reserves amidst rising global uncertainty.

The Economic Survey 2024-25, presented in Parliament, forecasts a decline in gold prices while predicting a rise in silver prices. This projection comes amidst a broader trend of decreasing commodity prices, as highlighted by the World Bank's Commodity Markets Outlook for October 2024. The survey anticipates a 5.1% decline in 2025 and a 1.7% drop in 2026, primarily driven by falling oil prices, although increases in natural gas prices and stable outlooks for metals and agricultural materials may offer some balance.

Amidst a general downturn, the economic survey points out a specific trend among precious metals: a fall in gold prices and a rise in silver prices. The decline in metals and minerals is largely attributed to reduced prices in iron ore and zinc. Importantly for India, this trend is seen as beneficial for the country's inflation outlook.

The survey also notes that global market uncertainties have impacted foreign exchange reserves, with central banks diversifying holdings. Additionally, the IMF highlights shifts in the global reserve system away from dollar dominance. As India remains a major gold importer, these market dynamics will be closely monitored for their effects on inflation, trade, and reserves.

(With inputs from agencies.)