Gold's Meteoric Rise: What the Next 5 Years Could Hold for Investors

Gold Prices Soar 200% in 6 Years—Could Reach ₹2.25 Lakh by 2030, Say Experts

Over the past six years, gold has proven itself to be one of the most reliable and rewarding investment assets. According to a recent report by Motilal Oswal Financial Services Ltd. (MOFSL), gold prices in India have surged by a massive 200% between May 2019 and June 2025. The yellow metal, traditionally considered a safe haven during geopolitical uncertainty, has seen a renewed interest from investors globally.

Gold's Journey: From ₹30,000 to ₹1,00,000 per 10 Grams

In May 2019, the price of gold was around ₹30,000 per 10 grams. Fast forward to June 2025, and the price crossed the ₹1,00,000 mark, with the Multi Commodity Exchange (MCX) reporting a sharp rise of over 30% just in 2025 alone. This dramatic rise isn't just limited to one year—it’s a consistent upward trend observed across the past six years.

For example, in May 2019, gold was trading on MCX at approximately ₹32,000 per 10 grams. By July 2025, the price had climbed to ₹97,800, indicating the scale of appreciation. At its peak in 2025, gold even touched a record high of ₹1,01,078 per 10 grams on MCX.

Why Are Gold Prices Rising So Rapidly?

Several key global events and economic patterns have contributed to gold's meteoric rise:

• COVID-19 Pandemic: The uncertainty and global slowdown created massive demand for stable assets like gold.

• Loose Monetary Policies: Central banks around the world pumped liquidity into the system, boosting gold prices.

• Geopolitical Tensions: Conflicts such as the Russia-Ukraine war and ongoing tensions in the Middle East kept risk sentiment high.

• Market Volatility: Uncertainty in equities, inflationary pressure, and recession fears pushed investors toward gold.

• Institutional Interest: Countries like China have started diversifying their insurance portfolios with gold, reportedly allocating 1% of their assets under management (AUM) to the precious metal.

Gold as a Long-Term Investment

Experts continue to view gold as a strong portfolio diversifier. It holds strategic importance in wealth protection and hedging against inflation or currency depreciation.

LiveMint, quoting investment strategists, reports that if gold continues growing at a compound annual growth rate (CAGR) of 18% as it has over the past five years, it could reach ₹2,25,000 per 10 grams by 2030.

This prediction is based on current macroeconomic trends and the persistent demand for gold as a secure investment tool, especially amid rising geopolitical risks and potential trade wars.

Is a Price Slowdown Ahead?

Despite the bullish sentiment, MOFSL’s latest gold strategy report signals that a price consolidation phase could be on the horizon. According to Manav Modi, Precious Metals Analyst at MOFSL, while long-term factors remain supportive, in the short term, the market may await a new trigger for the next big rally.

Modi notes several reasons for this potential slowdown:

• Easing geopolitical stress in regions like Israel-Iran and Russia-Ukraine

• Reduced momentum in the global tariff war

• Fading hopes of interest rate cuts

• Slowing central bank gold purchases

• Gold already being priced at elevated levels for a prolonged period

Final Word: Should You Invest Now?

While gold has delivered stellar returns, new investors must balance their enthusiasm with caution. The coming years may still offer gains, especially if global risks persist. However, timing, diversification, and clarity on financial goals should guide any investment decisions.

For existing investors, gold remains a reliable asset. But for those entering now, it’s important to recognize that while gold may climb further, market volatility and global triggers will play a decisive role in shaping its trajectory.