Gold Prices – Is Gold’s Six-Month Winning Streak a Sign of a Major Bull Run?

Gold Prices – On June 21, gold prices experienced a slight decline in the domestic futures market, influenced primarily by rising geopolitical tensions between Israel and Iran, coupled with the hawkish stance of the United States Federal Reserve regarding benchmark interest rates. Despite this recent dip, gold has demonstrated remarkable resilience in recent times, maintaining elevated price levels fueled by ongoing geopolitical concerns.

Two Decades of Unprecedented Growth for Gold

Gold’s impressive long-term performance cannot be overstated. Over the last 20 years, the price of gold has surged approximately 1,200%, climbing from around ₹7,638 per 10 grams in 2005 to surpassing ₹1,00,000 in 2025 (data valid until June). This extraordinary growth reflects gold’s status as a reliable store of value and a hedge against inflation and geopolitical uncertainty.

Historic Six-Month Winning Streak

Adding to gold’s bullish narrative, the yellow metal is currently on a six-month winning streak, a significant achievement not seen since May 2002, according to a report by Axis Securities. In June 2025 alone, gold prices increased by 3%. Should this positive trend persist through the month, it will mark one of only 13 occurrences of such consecutive growth periods in the past 75 years—highlighting gold’s extraordinary market strength.

Silver Prices Stay Strong Above ₹1 Lakh/Kg

Meanwhile, silver prices have shown remarkable stability, remaining consistently above the ₹1 lakh per kilogram threshold for the past three weeks. Silver, too, has seen substantial growth over the past two decades, rising 668.84%, underlining its increasing demand and safe-haven appeal.

Geopolitical Risks and Market Volatility Support Precious Metals

The recent escalation in tensions between Israel and Iran has intensified market volatility, driving investors towards safe-haven assets like gold and silver. The geopolitical uncertainties, coupled with concerns about inflation and tightening monetary policies by the Fed, have collectively bolstered demand for these metals.

Market experts emphasize that precious metals are traditionally viewed as safe-haven investments during times of crisis and economic uncertainty. However, they also advise that investors incorporate these assets into their portfolios strategically, considering their volatility and the broader economic context.

What This Means for Investors

Gold and silver prices are influenced heavily by geopolitical events and monetary policy.
The ongoing Fed rate hikes contribute to short-term price adjustments but do not undermine the metals’ long-term value.
Sustained geopolitical tensions tend to boost demand for precious metals.
Historical data underlines gold’s exceptional performance over two decades.
Silver, while more volatile than gold, is also gaining ground as a valuable portfolio asset.

Central Bank Demand and Currency Volatility Add to Bullish Outlook

Beyond geopolitical risks, central bank demand continues to be a key pillar supporting gold’s long-term strength. According to the World Gold Council, central banks have been net buyers of gold for 12 consecutive quarters, seeking to hedge against currency volatility and inflation. With ongoing concerns about the stability of fiat currencies and the potential for further interest rate shifts globally, this institutional appetite for gold acts as a robust foundation for price resilience. Additionally, in countries experiencing currency depreciation, local gold prices are seeing even sharper increases, making the yellow metal an attractive asset for wealth preservation.

Investor Behavior Shifts Toward Precious Metals

As global markets remain under pressure from geopolitical instability, inflationary headwinds, and recession fears, a noticeable shift in investor sentiment is occurring. More retail and institutional investors are reallocating portions of their portfolios into precious metals, viewing gold and silver not just as hedges, but as performance assets amid prolonged market turbulence. The consistent inflow into gold ETFs and rising physical bullion demand across Asia and Europe reflect a growing desire for stability in uncertain times. This trend, if sustained, could further tighten supply dynamics and fuel continued price appreciation through the remainder of 2025.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.