Gold Prices In India Outlook: Why 24K, 22K, 18K Gold Are Perfect Investments For 2025 Festive Season?

Gold prices in India held steady ground on January 23, 2024, after rising by Rs 860 per 10 grams on the previous day. As the Budget 2025 announcement nears, gold and silver prices continue to extend upside. So far in January 2025, 22K and 24K gold prices have surged by over 5%. The winter season is usually packed with wedding bells, coupled with festivities which is part of the multi-cultural India. These seasons generally see huge demand for precious metals. This 2025 festive, Aditya Modak, COO & CFO of P N Gadgil & Sons believes gold is the perfect investment option.

Gold Prices In India:

Gold prices stood at its monthly high on January 23. 10 grams of 24K is at Rs 82,090, while the prices are at Rs 75,250 per 10 grams in 22K and at Rs 61,570 per 10 grams in 18K. So far gold prices have surged by more than 5.2% in January 2025.

In 2024 alone, gold rose by 25% and broke at least 40 new record highs. Total gold demand surpassed $100 billion for the first time in Q3, driven by its role as a hedge against rising geopolitical tensions, currency debasement, and market volatility.

Gold has outperformed many asset class since last year. According to World Gold Council, even with a price moderation in November and December, gold surpasses other key asset classes to lead returns in 2024.

As per WGC, gold has started 2025 on a strong note, rising 2.7% to US$2,679/oz as of 10 January, partly recouping the losses of the previous two months. Global uncertainties continue to support prices. There has been a similar increase in INR terms too (to INR78,360/10g).

Why Gold Could Still Be the Perfect Investment for the 2025 Festive Season?

Aditya Modak, COO & CFO of P N Gadgil & Sons told GoodReturns.In, gold, with its enduring value, remains an unparalleled investment choice for the 2025 festive season, even as prices reach new highs. Its cultural significance during festivals ensures its demand never wanes. There is a shift towards lower-karat gold and more versatile designs that align with evolving consumer preferences.

Modak added, these options provide affordability and practicality, making gold an appealing and sensible choice for festive buyers. What sets gold apart is its dual role-it is both a symbol of prosperity and a secure financial asset. Even amid fluctuating markets, gold offers stability, making it a wise choice for long-term planning.

World Gold Council is also bullish on gold. It said, jewellery demand is expected to gradually recovery from mid-January, primarily driven by wedding purchases. Demand, however, will be favourably influenced by gold price stability. The recent trend in investment demand is expected to continue.