Despite price rise, central banks to buy gold in FY25
Deccan ChronicleChennai: Despite the sharp rise in gold prices, the central banks will continue to add gold to their reserves in FY25. As per the data from a survey done by the World Gold Council, more than eight in ten central bank reserve managers are expected to increase their gold holdings in the next 12 months. This view of gold from reserve managers persists despite two successive years of record central bank purchasing and the gold price hitting new all-time highs in 2024. Meanwhile, ICRA expects jewellery consumption growth in volume terms to contract in FY2025 after a muted volume growth of 2 per cent and 4 per cent in FY2023 and FY2024. The current gold prices are higher by 19 per cent over the FY2024 average and remain exposed to the confluence of factors like the global macro-economic environment, geo-political tensions, inflation, and currency movements.