Page 13 - Bullion World Volume 03 Issue 07 July 2022
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Bullion World | Volume 5 | Issue 09 | September 2025
2. Demand-Supply 4. Gold Price Outlook
Dynamics and Policy (6–12 Months)
Expectations
Gold prices are expected to remain elevated
Gold demand in India remains strong, over the next 6–12 months, supported
supported by both investment purchases and by ongoing global uncertainties, central
rural jewellery buying, which offsets some bank purchases, and a low-interest-rate
of the price-sensitive slowdown. Silver is environment. In the short term, prices may
witnessing a revival, driven by industrial use, consolidate between ₹98,000 and ₹1,02,000
especially in solar energy and electronics. per 10 grams before potentially breaking
higher.
Supply, however, is entirely import-dependent
due to the lack of viable domestic gold If bullish momentum continues, gold
mines, leaving prices sensitive to currency could reach new highs in the range of
movements and duty changes. The industry ₹1,12,000–₹1,15,000 per 10 grams within
continues to seek government support in a year. However, easing geopolitical risks
the form of lower import duties, streamlined or a stronger global recovery could trigger
hallmarking, reforms in the Gold Monetisation corrective phases.
Scheme, and clearer GST compliance
guidelines. For investors, Mr Prithviraj Kothari advises
maintaining core holdings for long-term
Jewellers are also hopeful for incentives stability while using dips to accumulate
around bullion banking and domestic refining, positions.
which would help build resilience in supply
chains. With market uncertainty, many traders
and consumers are also maintaining high stock
levels as a hedge against volatility. Closing Note
Reflecting on the outlook,
Mr Prithviraj Kothari remarks:
3. IBJA Activities and “Gold has always been a
Programmes symbol of security in Indian
households and continues
The India Bullion and Jewellers Association
(IBJA) continues to play a key role in driving to be a hedge against global
market development, enhancing price uncertainties. With evolving
transparency, and advocating on behalf of investment patterns and
the industry. IBJA has expanded its outreach government policy support,
to help jewellers embrace digital platforms,
while also engaging policymakers on critical the bullion market will only
issues such as duty rationalisation and bullion strengthen further. My advice
banking. to investors is simple - stay
invested, stay disciplined,
Through conferences, networking events, and
industry dialogues, IBJA facilitates interaction and let gold work for you in
between miners, refiners, traders, and the long run.”
retailers, ensuring the Indian bullion industry
remains competitive and aligned with global
best practices.
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