Asset performance in 2025 highlighted a clear contrast between Indian equities and precious metals.
While stock markets delivered steady but measured returns, gold drew sustained investor attention amid global uncertainty.
A comparison of returns from the Nifty 50 and gold over the year offers useful insight into how different asset classes responded to economic signals, geopolitical developments and changing expectations around interest rates.
India’s benchmark Nifty 50 index recorded a year-to-date gain of around 10.71% in 2025 as of December 23.
The index traded close to 26,172 by late December, compared with levels near 23,644 at the beginning of the year.
Equity markets remained supported by domestic growth prospects and earnings stability, though gains were relatively measured compared with other asset classes, as per news reports.
Gold prices posted a sharp rise over the course of 2025, with the metal gaining close to 70% during the year. The rally was driven by persistent demand for safe-haven assets as investors responded to global economic and political developments. Gold reached multiple record highs, reflecting its role as a store of value during periods of uncertainty.
Internationally, gold prices crossed the $4,480 per ounce mark for the first time, registering numerous record-breaking sessions during the year.
In the domestic market, 24-carat gold prices climbed beyond ₹1,38,890 per 10 grams as of December 24. The rise in local prices also reflected currency movements alongside global trends.
Several factors contributed to gold’s performance in 2025. Heightened geopolitical tensions, including developments in Venezuela and related actions affecting global energy trade, supported demand for defensive assets.
Expectations that US interest rates could ease in the coming year further boosted gold’s appeal.
Continued inflows into gold exchange-traded funds and ongoing purchases by central banks also underpinned prices.
When viewed side by side, gold delivered higher returns than the Nifty 50 in 2025. While equities offered moderate growth, gold benefitted from risk aversion and macroeconomic uncertainty.
The contrast highlights how asset allocation outcomes can vary significantly depending on prevailing global and financial conditions.
The 2025 performance of gold and the Nifty 50 illustrates the differing roles played by equities and precious metals in an investment portfolio. Equities reflected steady economic progress, while gold responded more directly to global uncertainty and monetary expectations.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 24, 2025, 10:10 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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