Gold Shines Brightest in FY25, Surging 41% Amid Global Uncertainty

Gold has emerged as the top-performing asset class in FY25, delivering impressive returns of 41% in USD terms and 33% in INR, according to the National Stock Exchange's (NSE) April Market Pulse report. This surge is attributed to heightened global uncertainties and a significant increase in investment demand, which rose by 25%, propelling global gold demand to a 15-year high of 4,974 tonnes.

Central banks worldwide have been major contributors to this demand, purchasing over 1,000 tonnes of gold for the third consecutive year—more than double the annual average between 2010 and 2021. Reflecting this trend, the Reserve Bank of India (RBI) increased gold's share in its forex reserves to 11.4% in 2024, up from 6.7% in 2014.

Despite gold's stellar performance this fiscal year, the NSE report notes that over a 20-year period, Indian equity markets have outperformed. The Nifty index's price return stands at 13%, with a total return of 14.4%, compared to gold's 10.5% return over the same timeframe.

Investor participation in India continues to grow robustly. The NSE's total registered investor base reached 11.3 crore in March 2025, with 2.1 crore new investors added in FY25 alone—the highest in the last five years. States like Uttar Pradesh, Maharashtra, and Andhra Pradesh saw the largest increase in new investors.

On the trading front, equity cash market turnover experienced significant growth, jumping from ₹90 lakh crore in FY20 to ₹281 lakh crore in FY25, reflecting a compound annual growth rate of 26%. The average daily turnover in the cash market reached a record ₹1.1 lakh crore.