far in 2024, the gold prices have climbed over 30% to Rs 7,300 per gram in the Indian markets, and are set for their best calendar year performance in 10 years, suggests a recent report by World Gold Council (WGC).

It said that the gold prices are up 28% in USD till November-end.

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However, this stellar run, analysts believe, may not carry through till the end of 2025 in the backdrop of economic and geopolitical headwinds.

Central bank demand remained robust, with gold buying reaching 694 tonnes by Q3-CY24 – comparable to levels seen in 2022, according to WGC data.

It said that the emerging market central banks continued to dominate the gold market with Turkey and Poland adding 72 tonnes and 69 tonnes to their gold reserves, respectively till October 2024.

RBI added 27 tonnes in October, bringing its total gold purchases to 77 tonnes till October. India’s net buying till October was a five-fold increase on its 2023 activity.

“Asian investors have been a near constant presence, while lower yields and a weakening US dollar in Q3-CY24 fuelled Western investment flows. However, it is gold’s role as a hedge amidst rising market volatility and geopolitical risk that most likely explains its remarkable performance,” WGC said.

The reports cited analysts and said they expect 2025 to be a challenging year for gold as they face multiple headwinds, the immediate of which is Donald Trump’s presidency and its impact on the global economy and financial markets. Developments in China – one of the biggest consumers of gold – will also be a key monitorable.

Notably, Goldman Sachs and UBS, too, expected a modest upside in gold prices in 2025 amid volatility as geopolitics, trade wars keep the overall sentiment in check.