Gold Price Surge in 2024–2025: Should You Still Invest?

Gold has seen a significant price jump since 2024. In the domestic market, prices rose by 27.24% during 2024. In the first few months of 2025, prices have gone up another 18%. Overall, gold has become 45% more expensive in the past 15 months. Many investors are now asking: will this trend continue, or is a decline coming? If you’re considering investing in gold ETFs or mutual funds—or thinking about buying gold jewelry—here’s what you need to know.

Will Gold Prices Keep Rising?

Gurvinder Singh Wasan, Senior Fund Manager at Baroda BNP Paribas Mutual Fund, explains that the 15-month gold rally is mainly due to global political and economic uncertainty. In times of instability, investors turn to gold as a safe asset. Central banks have also increased their gold purchases to reduce their reliance on the U.S. dollar. These combined factors are likely to support gold prices for the foreseeable future. While some short-term stability is expected, the long-term trend points upward.

Should You Invest in Gold Funds?

Gold-related assets remain a solid choice for long-term investors. To manage short-term price changes, a Systematic Investment Plan (SIP) is recommended. Investment options like gold index funds, ETFs, and fund of funds can help stabilize your portfolio during times of uncertainty and serve as protection against inflation.

What to Do If You’ve Made Gains on Gold

If your gold investments have already delivered profits, it’s wise to maintain a diversified portfolio. This should be based on your risk level, investment goals, and time horizon. Review your investments regularly to stay aligned with your strategy. Financial advisors suggest sticking to your long-term asset allocation plan. Rebalancing can be done if needed, with professional guidance. Gold is best treated as a long-term investment.