Fri Jan 31 18:02:53 IST 2025: ## Gold Prices to Fall, Silver to Rise in 2025: Economic Survey
**New Delhi, [Date]** – India’s Economic Survey 2024-25, tabled in Parliament today, predicts a decline in gold prices and a potential increase in silver prices in 2025. The forecast aligns with the World Bank’s October 2024 Commodity Markets Outlook, which projects a 5.1% decrease in overall commodity prices in 2025, driven primarily by falling oil prices. While natural gas prices are expected to rise, and metals and agricultural raw materials remain stable, gold is projected to see a price decrease. Conversely, silver prices are anticipated to increase.
The survey notes that the overall decline in imported commodity prices is positive for India’s inflation outlook. However, the report also highlights increased global uncertainty leading to fluctuating foreign exchange reserves. This uncertainty has resulted in a surge in gold bullion holdings by emerging market central banks, including India, nearing post-World War II highs in 2024. Increased gold imports in India are attributed to higher global prices, pre-festive buying, and safe-haven demand.
The Economic Survey acknowledges the potential impact of falling gold prices on investor sentiment, but suggests that rising silver prices could partially offset this. The government plans to closely monitor precious metal price movements and their effects on inflation, trade, and foreign exchange reserves in the coming fiscal year. The substantial Indian demand for gold, particularly during festivals and weddings, remains a key factor in the country’s economic considerations. The survey also mentions the IMF’s observation of ongoing shifts in the global reserve system, with a potential move away from dollar dominance.
First Piper 