Gold prices touching new highs every day: What comes next?
What's the story
Gold prices recently hit record highs, but have since fallen amid easing global trade tensions and hopes of an end to the US government shutdown. The precious metal fell as much as 0.8% from its peak today. Technical indicators suggest that the August rally may have peaked, while a stronger US dollar this week has made precious metals pricier for many buyers. So, where is gold headed in the near future? Let's find out.
Expert opinions
Gold may yield 3-4% returns in dollar terms: Damani
Ramesh Damani, a veteran investor and member of the Bombay Stock Exchange, said that equities have historically outperformed gold over the long term. He said, "In dollar terms, gold returns about 3-4% a year while equities return 9-10%." Damani added that while gold may suit traders or speculators, investors could find equities more rewarding in the next five to 10 years.
Market analysis
'Correction could be coming'
Atul Suri of Marathon Trends said long-term investors shouldn't exit their gold positions just yet, but warned that the recent parabolic surge may not be sustainable. He said, "When the whole crowd is onto it, a correction could be coming." This comes as investors closely watch US-China trade developments and President Donald Trump's hopes for a "really great trade deal" with Beijing.
Future outlook
Gold's stellar performance in 2025
Gold has performed strongly in 2025, logging its ninth consecutive week of gains. Prices have risen by 65% this year, driven by central bank purchases, inflows to exchange-traded funds (ETFs), and strong demand for havens amid geopolitical tensions, rising government debt levels, and also concerns over the Federal Reserve's independence. The future performance of gold will depend on these factors.