New Delhi:

Gold prices are likely to rise again in the coming days with experts predicting even more golden days for the world's most loved metal in the next two years. Due to rising prices, some experts are anticipating short-term profit-booking pressure, but are also claiming huge profits from investing in gold in the future.

Experts feel that the price of gold can reach Rs 1.25 lakh per 10 grams in one and a half to two years. Switzerland-based brokerage firm UBS has increased its gold price forecasts to 3200 dollar/oz, anticipating higher investment demand. In the same month February 2025, it raised the gold price target for this year to dollar 3000/oz in recognition of the robust demand from central banks for diversification of Forex reserves and ETFs as well.

Gold is also key to bolstering portfolios against a spike in risk aversion, and "we would allocate 5% of a balanced USD-based portfolio to gold", the firm said. Although silver will not benefit directly from central bank purchases, a higher gold price is still likely to provide the price of silver with some support, as silver has a stable and strongly positive correlation with gold, it added.

In its report, the brokerage firm said that it raised its view on precious metals from a moderate overweight to a full overweight as the Trump administration's tariff agenda progresses and increases the risk of broader and deeper disruptions to global trade. In particular, we favour gold and silver as key beneficiaries in this current environment, the firm said.

Gold is also key to bolstering portfolios against a spike in risk aversion, and "we would allocate 5% of a balanced USD-based portfolio to gold", the firm said. Although silver will not benefit directly from central bank purchases, a higher gold price is still likely to provide the price of silver with some support, as silver has a stable and strongly positive correlation with gold, it added.

gold has slightly declined, but in the next 3-4 months, the price is expected to reach Rs 89,000-90,000 per 10 grams. He mentioned that a drop in gold prices could be seen in May-June, but not before that. He also added that in the coming 1 to 1.5 years, the price of gold could reach around Rs 1,25,000 per 10 grams. However, unlike gold, silver is not expected to see a similar surge in prices.

Head of Currency and Commodities at HDFC Securities mentioned that there is a resistance at Rs 87,000 per 10 grams for gold. Once this level is broken, gold is expected to rise further. He advised investors to take a cautious approach. In the long term, there is potential for an upside in gold, while in the short term, some profit booking is likely, he added. The recent podcast from Goldman Sachs, 'Why Gold Could Rise Even Higher', reveals that the year-end target for gold could be 3,500 dollar/oz. The reasoning it gave is twofold: first, structurally higher central bank demand and second, an expected boost in ETF flows as the Fed is anticipated to cut rates twice this year. That also said that if safe-haven demand remains strong or increases and if speculative positioning picks up again, gold could easily reach 3,300 dollars by the end of 2025.

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