5 Years of Gold Price Trend

Discover valuable insights of Bajaj Finance into gold price trends and predictions for the last and next 5 years.
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3 mins
16 January 2025

Gold has always been a valuable asset, reflecting economic stability and investor sentiment. Understanding gold price trends is crucial for investors, borrowers, and financial analysts.

This article provides an overview of the gold price trend over the last five years and predictions for the next five years, offering insights into future market trends, projected price movements, and their implications on loan-to-value ratios and gold loan terms.

Gold price trend over the last 5 years

Over the past five years, gold prices have shown significant volatility, influenced by various global economic factors.

  1. 2019: Gold prices began to rise due to economic uncertainties and trade tensions between the US and China, ending the year at around Rs. 113,000 per ounce.
  2. 2020: The COVID-19 pandemic triggered a surge in gold prices as investors sought safe-haven assets, peaking at over Rs. 148,000 per ounce in August.
  3. 2021: Despite a robust economic recovery, inflation concerns kept gold prices relatively high, fluctuating between Rs. 125,000 and Rs. 140,000 per ounce.
  4. 2022: Geopolitical tensions, particularly the Russia-Ukraine conflict, contributed to a spike in gold prices, reaching around Rs. 145,000 per ounce.
  5. 2023: The prices have stabilised but remained high due to ongoing inflation and economic uncertainty, averaging around Rs. 143,000 per ounce.

Note: These INR values are approximate and based on the exchange rate of 1 USD = 74 INR. Adjustments may be necessary depending on the current exchange rate.

Predictions for gold prices over the next 5 years

Year Predicted Price Range (per ounce)
2024 Rs. 1,55,000 - Rs. 1,71,000
2025 Rs. 1,63,000 - Rs. 1,79,000
2026 Rs. 1,67,000 - Rs. 1,83,000
2027 Rs. 1,71,000 - Rs. 1,87,000
2028 Rs. 1,75,000 - Rs. 1,91,000


These predictions are based on current economic indicators, including inflation rates, geopolitical tensions, and monetary policies of major economies.

(Note: The conversion is based on an approximate exchange rate of $1 = Rs. 82. Please adjust according to the current exchange rate for more accurate figures.)

Analysing future gold market trends (2024-2029)

To understand what is the gold market price trend in the future, several factors need to be analyzed:

  1. Economic policies: Central bank policies, especially those of the Federal Reserve, will play a significant role. Interest rate changes and quantitative easing measures can affect gold prices.
  2. Inflation: Persistent inflation concerns may drive up demand for gold as a hedge, pushing prices higher.
  3. Geopolitical stability: Ongoing geopolitical tensions and conflicts will likely sustain demand for gold as a safe-haven asset.
  4. Technological advances: Innovations in mining and gold recycling technologies could influence supply and, consequently, prices.
  5. Market sentiment: Investor behaviour, influenced by market volatility and economic forecasts, will impact gold prices.

By analysing these trends, stakeholders can make informed decisions regarding gold investments and loans.

Projected gold price movements in the next 5 years and last 5 years

Let us explore the projected prices in the next 5 Years:

  1. Steady increase: Predicted gradual increase due to inflation and economic policies.
  2. Geopolitical impact: Potential spikes due to geopolitical instability.
  3. Technological influence: Changes in supply due to new mining technologies.
  4. Economic recovery: Slow but steady economic recovery supporting gold prices.

Let us explore the gold price trend in last 5 Years:

  1. 2019-2020: Sharp rise due to trade tensions and COVID-19.
  2. 2021-2023: Fluctuations due to economic recovery and geopolitical tensions.
  3. Stabilisation: Recent stabilisation but at high levels due to persistent inflation.

Future gold prices and their effect on loan-to-value ratios

Future gold prices will significantly impact loan-to-value (LTV) ratios in gold loans. As gold prices rise, the value of collateral increases, allowing borrowers to secure higher loan amounts. For example, if gold prices reach $2,200 per ounce, the LTV ratio will improve, benefiting borrowers with more substantial loans.

However, lenders may adjust interest rates to mitigate risks associated with price volatility. High gold prices also enhance the attractiveness of gold loans, making them a preferred option during economic uncertainties. It's essential for borrowers to stay updated on gold price trends to optimize their loan terms.

Gold loan benefits and risks during economic uncertainty

Benefits of gold loan:

  1. Quick access: Gold loans provide fast access to funds, crucial during economic crises.
  2. Lower interest rates: Compared to personal loans, gold loans generally have lower interest rates.
  3. High LTV ratios: Rising gold prices can increase the loan amount you can secure.
  4. Flexibility: Multiple repayment options, including bullet repayment, make gold loans flexible.

Risks involved:

  1. Price volatility: Fluctuating gold prices can affect the collateral value.
  2. Repayment pressure: Inability to repay can lead to the loss of gold assets.
  3. Interest rate changes: Economic instability can lead to fluctuating interest rates, affecting loan affordability.

How past gold price trends affect gold loan terms

Past gold price trends significantly influence current gold loan terms. High gold prices in the past five years have led to favourable loan terms, with higher loan amounts and lower interest rates.

For example, Bajaj Finserv Gold Loan offers competitive gold loan interest rates based on current and historical gold prices. Understanding past trends helps in negotiating better terms, as lenders use historical data to set today gold loan rate. Borrowers can leverage high past prices to secure better loan conditions, ensuring optimal use of their gold assets as collateral.

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Frequently asked questions

What has been the trend of gold prices over the last five years?

Over the last five years, gold prices in India have shown significant volatility. In 2019, prices began to rise due to economic uncertainties and trade tensions, closing the year at approximately ₹36,500 per 10 grams. The COVID-19 pandemic in 2020 triggered a sharp surge, with prices peaking at over ₹56,000 per 10 grams. In 2021, despite economic recovery, inflation kept prices fluctuating between ₹45,000 and ₹50,000 per 10 grams. Geopolitical tensions in 2022 further pushed prices to around ₹54,000 per 10 grams. By 2023, prices stabilised at around ₹53,500 per 10 grams.

What are the predictions for gold prices over the next five years?
Over the next five years, gold prices are expected to continue their upward trend due to persistent inflation, economic uncertainties, and geopolitical tensions. Factors such as central bank policies, investor demand, and technological advancements in gold mining are expected to influence these price trends, maintaining gold's status as a safe-haven asset​.
How should investors approach gold investments over the next five years?
Over the next five years, investors should consider a balanced approach to gold investments. Diversify your portfolio by including physical gold, gold ETFs, and gold mining stocks to mitigate risks. Stay informed about economic indicators such as inflation, interest rates, and geopolitical events, as these factors will influence gold prices. Regularly review and adjust your investments based on market conditions. Long-term holding of gold can provide stability during economic uncertainties, while short-term opportunities may arise from market volatility​.
What were the highest and lowest gold prices recorded in the last five years?

Over the last five years, the highest gold price was recorded in August 2020, reaching over Rs. 1,55,000 per ounce, driven by the COVID-19 pandemic and economic uncertainty. The lowest price during this period was around Rs. 95,000 per ounce in May 2019, influenced by a relatively stable economic outlook and lower market volatility at that time. These fluctuations highlight gold's sensitivity to global economic conditions and investor sentiment.

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