Where is Gold headed in the next 12 months ?

A Rising Tide

Gold prices have been on a steady upward trajectory in recent months. This trend is reflected in the forecasts of major financial institutions, including UBS. The bank’s latest report predicts that gold prices will continue to rise over the next year.

Bright Future for Gold

UBS forecasts that gold prices will reach $2,750 by December 2024, $2,850 by March 2025, and $2,900 by September 2025. This represents a potential increase of around 10% over the next year.

The Impact of Interest Rates

The forecast for gold prices is influenced by the expected path of interest rates. As central banks continue to cut interest rates, gold becomes more attractive to investors as a hedge against inflation and economic uncertainty.

A More Optimistic Forecast

While UBS’s forecast is bullish, it’s possible that gold prices could rise even higher. Given the current economic environment and the potential for further rate cuts, I believe that gold could reach $3,000 by September 2025.

The Rupee Perspective

In rupee terms, the expected rise in gold prices could be even more significant. Assuming a 5% depreciation in the rupee against the dollar over the next year, gold prices in India could reach around ₹85,000 per 10 grams by the next festive season.

Conclusion

The outlook for gold remains positive. With continued economic uncertainty and potential for further rate cuts, gold prices are likely to rise in the coming months.

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