Will Gold Rate Decrease in Coming Days in India in 2025?
Google is filled with questions like, "Will gold rate decrease in coming days 2025?" or "Will gold price will increase or decrease in the future?"
This has made gold the talk of the town again. The yellow metal rising up to Rs.90,000 per gram in India has made Gold Mutual Funds a topic of everyday conversation.
Looking back at history, gold delivered 20% return when compared to nifty's 8.7% gain only. From Rs.78,000 to Rs.91,000, the price of gold has risen about 17% in less than 3 months so far in 2025.
There is no doubt that bulls have been proven right so far as far as gold is concerned, and the bears are licking their wounds.
But the irony lies in the future. “Will gold price increase or when will gold rate decrease”, or will it finally take a breather?
That is why this analysis explores the current gold price trends by revealing the factors that can influence the drop in gold rates in 2025. Read on.
Well, the “Yellow metal” Gold is very dear to us and has again become the talk of the town.
Let's see what is the current trend for gold is in the next heading.
Understanding the Current Gold Price Trend
You will often find gold prices fluctuating due to changes in the demand and supply of gold.
However, gold price predictions suggest a potential decrease in the coming week. The current price of 24-carat gold in India is around Rs.9,836 per gram. Meanwhile, you can buy the 22-carat gold at Rs.9,016 per gram (Rates as of 22.04.25).
Finding it impossible to answer, “Will gold rate decrease in coming days?” Move on to check the current gold prices in India.
Prediction for Gold Price Trends Down
The gold price trends are often influenced by several factors, and the predictions for a gold price drop in the coming days can be said based on the following factors:
- Strengthening US Dollar: A stronger US dollar makes gold more expensive, which leads to reduced demand for gold. There are predictions that the US dollar will grow by 2.7%, which will result in gold prices falling both globally and in India.
- Rising Interest Rates: Now, physical gold comes under the non-yielding assets, meaning if the interest rates are higher, this decreases the demand for gold, making fixed-income securities like bonds more attractive. If the US or India increases its interest rates in 2025, you will likely see the gold price drop in the coming days.
- Improving Global Economy: The global economy is projected to grow by up to 3.3%, which will result in lower demand for safe-haven assets like gold. This is because when the economy is growing, an investor's sentiment is high, investors get greedy and move towards riskier investments, which leads to a decrease in gold prices.
- Decreased Geopolitical Tensions: Gold prices often rise when there is a war going on in the Middle East. If peace prevails in such regions, it can lead to lower demand for gold as a hedge against risk.
- Increased Gold Supply: To meet the demand, gold mining production or major sales from large holders like central banks can increase the supply, resulting in a decrease in gold prices.
The above-discussed factors mean that gold prices might trend downward in the near future. However, these dynamics can change and it is essential to stay updated on the economic indicators and global events happening around the globe.
Learn: Why Sovereign Gold Bond Discontinued & How to Invest in Gold without SGB?
Factors that Influence the Price of Gold
The following are the factors that influence the price of gold:
Trade wars
Uncertainty about US President Donald Trump's tariff policies has raised the yellow metal's safe-haven appeal. After the election, Trump's decision to follow through on his promise to impose tariffs has raised concerns about a global trade war.
Trump has imposed 20% tariffs on imports from China, which China has fought against by charging tariffs on US imports. Amidst this, the US is also planning to reciprocal tariffs on many countries like Mexico and Canada. Thus, investors have begun to take defensive positions in the markets. Hence, moving to safer assets like gold or gold mutual funds for 2025.
Inflation
These new Trump policies might have a negative effect of increase in the rate of inflation US, at least for short-term investments.
Gold has always been an effective hedge against inflation, as proven in history. That is exactly the role it's playing now as well. If US inflation were to rise in 2025, gold prices will rise hand in hand. Inflation
Geopolitical instability
As per the sources, situations in the Middle East region have become too hot to handle in the Mutual Funds market. War is the last thing that this market needs.
The very fragile truce between Gaza has been violated and if this worsens, it will lead to increased gold rates in India.
After all, gold has always been a means of safeguarding wealth during political turmoil. In times of this struggle, people hold on to their wealth in physical gold instead of any other asset. Hopefully, this sentiment will not change in the foreseeable future.
US recession fears
The trade war triggered by the US has terrified the global markets, as Trump seems determined to see it through.
The predictions were made on the tariff policies would slow down in US then Trump would ease up on the tariff pressure.
However, it seems to be the other way around. The current tariff policy planned by the US government goes as planned; it would have a major impact on global trade.
This is why fears of recession in the US have increased recently. Additionally, gold does exceptionally well when there is a fear of recession in financial markets.
Will Gold Price Drop in Coming Days?
The short answer is yes, it can. When the entire buzz is created around the rising prices of gold in India, it possibility of the opposite slips through your mind.
In that case, it can lead to heavy losses for investors who hold onto gold.
The factors that can cause a fall in the gold prices are the same as the ones that are responsible for its rise, but only in reverse order.
Here is how,
- Trump lowers or cancels US tariffs from several countries.
- Inflation in the US falls faster than expected.
- Peace returns to the Middle East and Ukraine, even if temporarily.
- No major geopolitical situations are rising in the world, Taiwan, for example.
- Recession fears in the US go away.
As things stand, the bulls have the upper hand for now. However, investors should carefully watch out for any sudden changes that could drive up the prices of gold.
If the changes are sufficient, then in our expert opinion, the price of gold will fall.
Don’t Miss: “What will be the Expected Gold Rate in 2025 in India?”
Conclusion
To wrap up, experts suggest a 5-10% investment in the best gold mutual funds will benefit your existing portfolio. However, do not seek gold as a potential substitute for any other asset.
Now, to address the most asked question, "Will gold rate decrease in the coming days 2025?" According to the sources, there is a possibility of a slight decrease in the 24-carat gold prices in the next week, ranging between Rs.7,395 and Rs.7021 per gram.
One last pro tip: plan a long-term investment horizon of up to 7 years or long-term benefits. Want to read more about a detailed comparison between, “Gold Mutual Funds vs. Gold ETF Which One is Best for You?”
