Gold prices in India have surged past the ₹1 lakh per 10 grams mark, driven by global economic uncertainty, a weakening US dollar, and strong investor demand. However, experts are now debating whether the rally will continue or if a correction is imminent.
Gold’s Record-Breaking Surge
- On April 22, 2025, gold prices hit an all-time high of ₹1,01,600 per 10 grams, marking a 29% increase since December 2024.
- The Multi Commodity Exchange (MCX) saw gold futures peak at ₹99,358 per 10 grams, before settling lower due to profit booking.
- Globally, gold crossed $3,500 per ounce, reflecting heightened investor anxiety over macroeconomic headwinds and geopolitical risks.
Expert Predictions: More Gains or a Pullback?
- Analysts at HDFC Securities predict that MCX gold futures could reach ₹1,02,050, citing continued demand for safe-haven assets.
- However, Kedia Advisory warns that the current price zone appears overheated, suggesting a 7–8% correction to ₹91,000–₹92,000 may be likely.
- Kotak Securities notes that US-China trade tensions and fluctuations in the dollar index will play a crucial role in determining gold’s next move.
Investment Strategy Amidst Volatility
- Experts advise staggered entry into gold investments rather than chasing momentum.
- Gold ETFs and Sovereign Gold Bonds (SGBs) remain attractive options, offering returns without storage concerns.
- Investors should monitor global inflation trends and central bank policies, as these factors will influence gold’s trajectory.
With gold prices at historic highs, the debate continues—will the rally persist, or is a correction on the horizon?
