Gold prices on the Multi Commodity Exchange (MCX) experienced a decline on Thursday, primarily due to profit-taking, after reaching a stunning high close to the ₹96,000 threshold. The MCX gold rate peaked at ₹95,935 per 10 grams, marking a record before easing off. Similarly, in international markets, gold prices retreated as investors seized the opportunity to lock in profits following a recent surge.
Recent Trends in Gold Prices
As market watchers keep a close eye on ongoing tariff discussions between the United States and Japan, spot gold saw a decrease of 0.8%, settling at $3,317.63 per ounce. Meanwhile, US gold futures dropped by 0.5%, standing at $3,330.60. Earlier in the trading day, bullion hit an impressive record of $3,357.40 and has risen over 27% since the start of the year.
A Four-Year Journey of Growth
Gold has experienced extraordinary growth over the last four years. Back in April 2021, the MCX gold rate was approximately ₹47,000 per 10 grams. Fast forward to April 17, 2025, and the gold price skyrocketed to its historic high of ₹95,935, reflecting a staggering 104% increase.
- April 2021: ₹47,000
- April 2025: ₹95,935
- Growth: +104%
This impressive rise can be attributed to various factors, including heightened geopolitical tensions, the ongoing Russia-Ukraine conflict, substantial central bank purchases, and sustained demand for gold-backed exchange-traded funds (ETFs).
Consistent Performance
Gold has consistently yielded positive returns for eight years straight since 2018. The last three years alone have seen significant double-digit returns:
- 2022: 14.38%
- 2023: 14.88%
- 2024: 21.43%
- 2025 (YTD): 24.71%
In comparison, the Sensex index has risen from around 49,000 in April 2021 to approximately 78,500, achieving returns of about 60% over the same period.
Gold’s Dominance Over Other Assets
In 2025, gold has outperformed several key asset classes, including silver, base metals, and equities. The MCX gold rate has achieved a remarkable 24.71% return year-to-date, while MCX silver has only managed a 9.28% increase. The Indian stock indices have shown modest growth, with the Sensex rising merely 0.5% and the Nifty 50 trailing slightly behind at 0.8%.
Future Outlook for Gold Prices
Experts suggest that gold prices may not see significant upward movement from current levels as most positive factors are already reflected in the market. Ajay Kedia, Director at Kedia Advisory, notes, “Gold has already witnessed a sharp rally this year, and many supportive elements are likely priced in. A potential correction could occur in the latter half of 2025.”
Kedia anticipates that the MCX gold rate may test levels between ₹98,500 and ₹99,000 before encountering resistance. He predicts a correction down to between ₹78,000 and ₹80,000 in the future. In the international arena, gold prices are expected to fluctuate within a broad range of $2,750 to $3,600 throughout 2025.
As investors navigate these dynamic conditions, keeping an eye on geopolitical events and economic indicators remains crucial for making informed decisions in the gold market.
