Gold more likely to keep excessive as weak rupee and international demand carry costs: Report

Gold costs in India are anticipated to remain agency by the remainder of 2025, supported by a weakening rupee and a continued uptrend in international markets, in keeping with a sectoral replace by ICICI Financial institution International Markets, reported by ANI. The report means that home gold costs are more likely to stay elevated amid sturdy festive demand and sustained funding curiosity.

The ICICI Financial institution report initiatives the rupee to commerce between 87.00 and 89.00 towards the US greenback within the fourth quarter of 2025 and the primary half of 2026. This, mixed with regular international worth good points, is anticipated to maintain Indian gold costs on the upper facet.

Home gold costs are forecast to commerce between Rs 1,20,000 and Rs 1,35,000 per 10 grams by the rest of this yr and will rise additional to Rs 1,30,000-Rs 1,45,000 in early 2026.

The report famous that dangers stay tilted upwards if the rupee depreciates sooner or worldwide costs exceed present projections. At current, gold is buying and selling round Rs 1.31 lakh per 10 grams on the Multi Commodity Alternate (MCX).

In an earlier interview with ANI, Anantha Padmanaban, founder member and former chairman of the All India Gem & Jewelry Home Council (GJC), mentioned gold may attain Rs 1.50 lakh per 10 grams within the coming months. He attributed the rise to “unprecedented momentum” in international and home markets, supported by central financial institution shopping for and strong public demand in international locations reminiscent of China and Japan.

Based on the ICICI Financial institution report, funding demand stays sturdy, mirrored in greater gold exchange-traded fund (ETF) holdings. The SPDR Gold ETF, one of many world’s largest, noticed its holdings rise from 975 tonnes on 13 September to 1,015 tonnes by 13 October 2025. Nevertheless, speculative internet lengthy positions declined by round 8,000 contracts throughout the identical interval, suggesting some short-term profit-taking.

Home gold costs have climbed practically 16 per cent over the previous month, largely as a result of international worth good points and a weaker rupee. Gold imports additionally rose sharply from $5.44 billion in August to $9.6 billion in September, signalling agency client and retail demand forward of the festive season.

“With the onset of the festive season, gold demand in India is anticipated to select up, which ought to maintain imports excessive,” the report mentioned. Whereas Indian households proceed to choose bodily gold within the type of jewelry, cash, and bars, the latest rally has additionally attracted city buyers in the direction of ETFs.

The World Gold Council not too long ago reported that India’s bodily backed gold ETFs recorded their largest-ever month-to-month influx in September, as buyers sought stability amid unstable inventory markets and international geopolitical considerations.