Citi Research has raised its near-term and 2025 average gold price forecasts, citing trade wars and geopolitical risks under U.S. President Donald Trump, along with robust central bank purchases.

Central banks stormed back into the gold market in the final three months of last year, playing a key role in the metal hitting an all-time high.

Gold demand in India witnessed a 5 per cent on-year rise at 802.8 tonnes in 2024 supported by reduction in import duty, and purchases related to weddings and festivals, and going ahead consumption of the yellow metal in 2025 is likely to be between 700-800 tonnes, according to the the World Gold Council.

Global gold demand including over-the-counter (OTC) trading rose by 1% to a record high of 4,974.5 metric tons in 2024 as investment increased, the World Gold Council (WGC) said on Wednesday, adding that central banks sped up buying in the fourth quarter.

Central banks and ETFs are predicted to drive gold demand in 2025, with economic uncertainty boosting its role as a hedge.