Gold prices may scale another record by the end of this year, with Comex futures projected to hit $3,600 per ounce, according to Ventura Securities. The brokerage attributed the rally to global economic headwinds, geopolitical risks and robust investment demand, as reported by PTI.“With inflationary pressures, a softening US dollar, and anticipated interest rate cuts by the Federal Reserve, we see sustained upside potential in gold prices through the remainder of 2025. … indicates Comex gold could test the USD 3,600 mark by year-end, supported by strong ETF inflows, steady central bank buying, and robust retail participation in India’s gold investment market,” said NS Ramaswamy, Head of Commodities at Ventura. Comex gold futures recently touched an all-time high of $3,534.10 on August 7. Domestically, October gold futures hit a record Rs 1,02,250 per 10 grams on the Multi Commodity Exchange a day later. “Gold retains upside potential with pronounced volatility, supported by weaker US growth, sustained pressure on the US dollar index, trade frictions and heightened geopolitical risks,” Ventura noted in its outlook. Global gold demand rose 3 per cent year-on-year to 1,249 tonnes in the second quarter, valued at $132 billion, marking a 45 per cent surge in value terms. Investment flows via exchange-traded funds (ETFs) have been particularly strong, with global ETF holdings up 16 per cent to 3,616 tonnes by June 30. Assets under management jumped 64 per cent year-on-year to USD 383 billion. India is following this trend, with domestic gold ETFs seeing a 42 per cent increase in holdings to 66.68 tonnes by June 30. Assets under management nearly doubled to Rs 64,777 crore, while investor accounts surged 41 per cent to 76.54 lakh, marking a 317 per cent rise over four years. Ventura highlighted a shift in investor preferences: younger buyers are increasingly opting for ETFs, fractional ownership, and digital gold platforms. “Over the past 20 years, gold has delivered positive annual returns in 14 calendar years, reinforcing its status as a proven store of value and a hedge against inflation,” the firm said. “Recent performance underscores its resilience, with average annual returns of 23 per cent over the last three years compared to 11 per cent for the Nifty 50 index,” it added. Central banks remain steady buyers of gold, Ventura added. With the Reserve Bank of India halting new issuances of Sovereign Gold Bonds since February 2024, ETFs and digital instruments are expected to capture a bigger share of investment demand.
