Gold and Silver Prices: Assessing August Prospects and Investment Strategies Under Global Uncertainty Conditions
Gold and Silver Prices Set to Soar in August 2025
Gold is experiencing robust demand as a haven, according to Aksha Kamboj, the Vice President of the India Bullion & Jewellers Association (IBJA). This demand is driven by weakening US growth, tariff-induced inflation pressures, and a weakening dollar.
Currently, gold prices in the international market have remained stable, not showing a significant increase or decrease in the national capital's prices. However, in the international market, gold prices have steadied on Tuesday, hovering near a two-week high.
Looking ahead to August 2025, the outlook for gold prices is incredibly strong. Several major financial institutions have revised their 2025 gold price forecasts upwards, anticipating prices between $3,300 and $3,700 per ounce by year-end. Goldman Sachs notably raised its forecasts to $3,700 or more, citing dollar weakness and geopolitical tensions as key drivers.
AI-based and analyst surveys show gold prices in August (Q3) generally ranging from about $2,650 to $3,366+, with some forecasts pushing even higher. The US dollar's weakness is a critical factor, with the US Dollar Index falling to levels not seen since 2021, enhancing gold's appeal as a safe haven. Geopolitical tensions in Ukraine, the Middle East, and US-China trade issues provide additional support for higher gold prices.
Investment demand is increasing again, especially in Asia where gold ETF inflows and bar/coin demand are rising, contributing to positive price sentiment. Market expectations for easier US monetary policy—including anticipated rate cuts starting September 2025—also support gold prices amid inflation concerns and uncertain tariff effects.
Regarding silver, while explicit quantitative forecasts for August 2025 are limited in these results, silver prices typically follow gold trends, benefiting similarly from dollar weakness and safe-haven buying. Historical and market linkage suggest silver will also have an optimistic outlook, though possibly with more volatility. Projections indicate a 15-20% increase in silver prices within the next 12-24 months.
In the national capital, the price of 24-karat gold currently stands at Rs 100,167 per 10 grams, while 99.9% purity gold is priced at Rs 98,020 per 10 grams. Gold prices for 99.5% purity rose by Rs 300 to Rs 97,800 per 10 grams on Monday. Spot gold is currently trading at $3,369.25 per ounce, with US. gold futures remaining unchanged at $3,423.20.
Aksha Kamboj suggests viewing gold as portfolio ballast and silver as a growth and diversification play. Citi sees gold in the $3,300-3,600/oz zone in the near future. The dollar index is trading near a one-week low, making gold more affordable to holders of other currencies.
The price of silver in the national capital is currently Rs 111,900 per kg. No new price information for silver in the national capital was provided in this paragraph.
In summary, gold prices in August 2025 are largely expected to remain strong or rise further, driven by macroeconomic and geopolitical factors, with prices likely in the mid-$2,600s up to $3,700+ per ounce range. Silver is expected to trend positively in tandem with gold but with less detailed projections available.
Investors may find opportunities in the real-estate sector, as the increasing demand for a safe haven could lead to higher inflation, which traditionally boosts property values. Furthermore, with strong gold prices expected in August 2025, the finance industry might forecast an increase in the investing appeal of stable, long-term assets like real-estate, supported by technology-driven trends that favor digital transactions and online investments.
