What's Gold price future in India? Will it touch ₹1.50 lakh per 10 grams again by December 2026? Experts' view

Detailed summary

Gold could revisit the ₹1.50 lakh per 10 grams level on MCX by December 2026, but the recovery would depend on a meaningful improvement in the global macroeconomic environment, according to market experts.

Gold price outlook: Gold prices have come under pressure in recent trading sessions, with the precious metal struggling to find support despite a sharp correction in crude oil prices. With the US Federal Reserve maintaining a hawkish stance, expectations of further interest rate hikes and a strengthening US dollar have weighed on bullion sentiment.

On the Multi Commodity Exchange (MCX), gold prices are trading near ₹1,38,500 per 10 grams, down from recent highs. Meanwhile, international spot gold is hovering around $3,955 per ounce.

Market experts remain divided on the near-term outlook, with some cautioning against further downside while others believe a recovery is possible if macroeconomic conditions turn favourable.

Several global macroeconomic factors are currently influencing gold prices, with the US Federal Reserve's monetary policy outlook emerging as the biggest driver.

According to Anuj Gupta, SEBI-registered research analyst, gold is facing selling pressure amid expectations that the US Federal Reserve could raise interest rates by 50 basis points.

A potential rate hike would make interest-bearing assets more attractive compared with non-yielding assets such as gold, potentially triggering further selling in precious metals.

Gupta said gold is currently under pressure, with international spot prices trading near $3,955 per ounce, close to the session's low. On MCX, prices are hovering around ₹1,38,500 per 10 grams.

Another factor weighing on gold is the strengthening US dollar. A stronger dollar generally makes dollar-denominated commodities more expensive for holders of other currencies, potentially reducing demand for bullion.

Interestingly, gold has failed to benefit meaningfully from the recent correction in crude oil prices. Crude has declined from around $118 to $92 per barrel amid progress in US-Iran diplomatic efforts.

Opening of the article, excerpted from Mint. To read the rest, open the article on the publisher's site.