Key Points

A troy ounce of gold is a unit of weight used explicitly for precious metals, and is equivalent to 31.1034768 grams according to the U.K. Royal Mint. It is also slightly heavier than the more common avoirdupois ounce.

Comex, short for Commodity Exchange, is a key marketplace in New York where metals such as gold and silver are traded. Its Indian counterpart, the Multi Commodity Exchange (MCX), serves as the country's largest commodity derivatives exchange, giving domestic investors exposure to international price movements.

Ventura's head of commodities, NS Ramaswamy, explained the forces behind this surge. "Gold's strategic role in portfolios has strengthened as investors navigate an era of slower global growth, policy uncertainty, and elevated geopolitical risks. With inflationary pressures, a softening US dollar, and anticipated US Fed rate cuts, we see sustained upside potential in gold prices through the remainder of 2025. Our analysis indicates Comex Gold could test the USD 3,600 mark by year-end, supported by strong ETF inflows, steady central bank buying, and robust retail participation in India's gold investment market," he said.

In India, digital gold investments are driving record growth. As per the report, Gold Exchange Traded Funds (ETFs) saw holdings rise 42 per cent year-on-year to 66.68 tons as of June 30, 2025. Their Assets Under Management (AUM) jumped 88 per cent to Rs. 64,777 crore, while investor accounts increased 41 per cent to 76.54 lakh. This shift from traditional jewellery buying to technology-enabled investment channels is being led by younger investors, particularly Gen Z, aided by fractional ownership models and fintech-driven platforms.

On the global front, demand for gold stood firm in the second quarter of 2025 at 1,249 tons, reflecting a 3 per cent year-on-year rise. Investment demand and ETF inflows offset weaker jewellery sales. Central banks continued their gold purchases, lifting global reserves to 36,345 tons, with India's holdings at 880 tons.

Gold has remained a resilient investment over the past two decades, delivering positive annual returns in 14 out of 20 years. In the last three years alone, gold has yielded average annual returns of 23 per cent, significantly higher than the Nifty 50's 11 per cent.

- ANI