Sat Feb 01 00:46:45 UTC 2025: ## Gold Prices to Fall, Silver to Rise in 2025: Economic Survey

**New Delhi, [Date of Publication]** – India’s Economic Survey 2024-25, presented to Parliament today by Finance Minister Nirmala Sitharaman, forecasts a decline in gold prices and a rise in silver prices in 2025. The survey projects a 5.1% drop in overall commodity prices in 2025, followed by a further 1.7% decrease in 2026. This predicted fall is primarily attributed to lower oil prices, although this is partially offset by rising natural gas prices and a stable outlook for metals and agricultural raw materials, according to the World Bank’s October 2024 commodity market outlook cited in the report.

The survey highlights that declining prices of imported goods will positively impact domestic inflation. However, the anticipated decrease in gold prices contrasts with a projected increase in silver prices. Metal and mineral prices are also expected to fall, mainly due to reduced iron ore and copper costs.

Despite gold imports surging in 2024 due to factors including increased global prices, pre-festive buying, and safe-haven demand – making India the world’s largest importer – the survey anticipates a price correction. This surge brought gold bullion holdings close to their highest level since World War II, driven largely by emerging market central banks accumulating gold reserves.

The report also notes that global market uncertainty has caused fluctuations in India’s foreign exchange reserves, as central banks adjust holdings to mitigate risks. The International Monetary Fund’s (IMF) observation of ongoing shifts in the global reserve system, including a gradual move away from dollar dominance and the rising role of non-traditional currencies, is also mentioned.

The Economic Survey suggests the predicted drop in gold prices might affect investor sentiment, while the anticipated rise in silver prices could offer some support to the bullion market. The government is expected to closely monitor commodity price fluctuations and their impact on inflation, trade, and foreign exchange reserves in the coming fiscal year.

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