Gold Prices in India May Drop 30% in 1 Year After Hitting a Peak Till Q1 2025

Even as tensions escalate in the Middle East with Israel and Iran locked in a bitter war, the gold price in India has grown approximately 30% in 2025. However, experts feel that gold has hit a peak and will fall by around 10% in the next month or two. The yearly price reduction can be around 30% in a year from now. Indias bullion markets, according to experts, have already accounted for gold buying by the central bank, geopolitical tensions, de-dollarisation, and ETF demand.

Citibank Predicts Fall in the Gold Price in India Over the Next Year

Citibank has revised its gold price target for the next year, exhibiting a reduction from $3,500 per ounce to $3,300 per ounce for the next three months and from $3,000 per ounce to $2,800 per ounce.

Ajay Kedia, Kedia Advisory, while talking to a leading business daily, expressed that, over the past ten years, the world didn‘t see a situation of simultaneous wars in the Middle East and the Black Sea. However, that’s happening and escalating. Gold rose on the first day of the Israel-Iran war. However, as the war has extended beyond a week, gold prices in India have stabilized, reflecting how it has factored in the tensions. He further said that, in the past, gold used to fall before making a recovery during such escalations. For that to happen, the international gold price chart must show beyond $3,500. Presently, the spot gold price is $3.371.5 an ounce in overseas markets.

Ajay stated that the bullion market has absorbed gold buying by the central bank, ETF demand, geopolitical tensions and de-dollarization.

8-10% Gold Price Correction is Imminent in the Near Term

Gold is likely to correct by 8-10% in the next month or two, and may drop to $2,700-2,800 per ounce in a year from here. In the case of significant global tension easing, the gold price may slump to $2,400 even, as per Ajay Kedias estimates. The price level of $2,400 is 30% lower compared to the existing one.

Quant Mutual Fund‘s Gold Price Forecast of 12-15% Correction in the Next Two Months

Brokerage firm Quant Mutual Fund has stated that gold has achieved its peak and may fall by 12-15% in the next two months. However, the firm emphasizes a meaningful space for precious metals in one’s investment portfolio.

Opportune Time to Sell Old Jeweleries

Rising gold prices present an opportunity for those having a huge stockpile of gold jeweleries to sell some of them to register profits. Short-term gains are inevitable with such an unprecedented gold price in India. However, those wishing to buy gold for the upcoming festive season may have to rejig their budget considerably. The correction estimate both in a couple of months and a year, if turned true, will help people buy adeqate gold for festivals and weddings. Presently, 25% of the customers are coming to exchange and sell jeweleries as opposed to 5-7% previously.