2025: The year gold outshone markets and rupee touched the 90-mark

If one asset defined India’s investment mood in 2025, it was gold. In a year marked by global uncertainty followed with currency pressure and very conservative equity sentiment, the evergreen yellow metal emerged as the clear winner.

Gold prices surged from around ₹78,000 to nearly ₹1,40,000, giving unprecedented returns and again proving why it is the most safe investment. In fact on Dec 27, Gold hit the highest when 10 gm of 24k gold (99.9%) in Delhi, India was at Rs. 1,44,265.

Equity markets, in contrast, offered far more modest gains. The Sensex ended the year with about 8% growth — respectable, but nowhere close to gold’s stellar rally. Volatility driven by global interest rate movements, geopolitical tensions and selective corporate earnings kept equity investors cautious for much of the year.

Currency markets added to the nervousness. The rupee weakened nearly 5% in 2025, sliding from 85.76 per dollar to around 89.86 by year-end. On Dec 3, rupee crossed the psychologically significant 90-mark for the first time and the pressure peaked on December 16, when the it closed on the lowest level, just below 91.

Persistent capital outflows, a strong dollar and higher import costs weighed heavily on the currency. It will be an interesting thing to watch how the rupee behaves from here. Will the slide be an acute one where INR would hit triple figure mark within months and it will stabilise at this moment.

Together, these trends underline a broader shift in investor behaviour. As equity returns moderated and the rupee lost ground, gold benefited from both safe-haven demand and currency depreciation. For Indian investors, 2025 served as a reminder that diversification matters — and that in times of uncertainty, gold still shines brightest.