Despite a recent correction in gold prices, industry experts remain confident that the precious metal is headed for another strong rally. Market observers believe a combination of global uncertainties, central bank buying and domestic demand could push gold prices to an unprecedented Rs 2 lakh per 10 grams by December 2026.
Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said the phase of price correction appears to have ended and a fresh upward movement is expected soon. “We will soon witness an upward trend from here. The prices will gradually start rising within a span of two months and it will touch the Rs 2 lakh mark, he said.
According to Rokde, gold demand in the domestic market has slowed temporarily following the conclusion of the wedding season. “But it is because most of the gold jewellery buying for marriage ceremonies is over. The demand will further pick up from the end of July and it will gather pace in August when the festive season begins in India, he observed.
The bullion market has witnessed sharp fluctuations over the last three months. Gold prices climbed to an all-time high of Rs 1.63 lakh per 10 grams on May 14, 2026, before retreating to around Rs 1.58 lakh per 10 grams in Nagpur on May 29.
Analysts attributed the decline to investor profit-booking, a temporary recovery in the US dollar and easing tensions in West Asia, which reduced the immediate appeal of safe-haven assets. However, experts believe the correction is only a short-term pause in a larger bullish trend.
Continued gold purchases by central banks, particularly those of China and Russia, along with persistent inflation concerns across major economies, have strengthened sentiment in the bullion market and renewed investor interest in bullion.
A weakening rupee has further supported domestic gold prices by increasing import costs. Experts noted that even when international rates soften, the depreciating Indian currency, coupled with import duties and GST, keeps local gold prices elevated and above global benchmarks.
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