Gold on Fire: Prices Soar Toward Record Highs – Could ₹2 Lakh Per 10 Grams Be Next?
Globally, the price of an ounce of gold currently hovers around $4,500, with HSBC forecasting it could reach $5,000 by March this year. The ripple effect on the Indian market is significant: 10 grams of gold, which now trades at approximately ₹1.41 lakh, could potentially touch ₹2 lakh by June, according to market experts.
Gold prices are blazing a trail unlike anything seen before. The precious metal, already hitting record highs in 2025, shows no signs of slowing down, with analysts predicting the upward trend to continue well into 2026. Soaring international bullion prices have pushed domestic rates into uncharted territory, leaving traders and consumers alike watching closely.
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International Prices Driving Domestic Surge
Globally, the price of an ounce of gold currently hovers around $4,500, with HSBC forecasting it could reach $5,000 by March this year. The ripple effect on the Indian market is significant: 10 grams of gold, which now trades at approximately ₹1.41 lakh, could potentially touch ₹2 lakh by June, according to market experts.
In 2025, gold delivered unprecedented returns, rising 64% in a single year – the highest since 1979. From 2023 to now, prices have surged 140%, fueled in part by central banks across several countries purchasing between 900 and 950 metric tons of gold. Last year, global gold demand reached 4,850 metric tons – the highest single-year jump since 2011.
Will the Rally End?
While the rally has been historic, analysts caution that gold may not maintain this momentum indefinitely. Some experts suggest that prices could stabilize in the coming months, with fluctuations inevitable. “It’s a cycle of ups and downs,” noted a senior market analyst. “Record-breaking runs like these rarely continue forever without some correction.”
Impact on Local Jewelers
The record highs are already affecting sales in jewelry stores. During the recent festival season, sales remained moderate, but currently, footfall has slowed significantly. Shopkeepers report that many consumers are hesitant to buy traditional gold jewelry at these prices.
Rising Demand for Rolled Gold Jewelry
Interestingly, the surge in gold prices has shifted consumer preference toward rolled gold jewelry. Lightweight, cost-effective alternatives are gaining popularity, especially during weddings and festive seasons. Over the past six months, demand for these items has surged to record levels, with jewelry retailers reporting unprecedented sales in this segment.
As gold continues to glitter on the global stage, Indian consumers and investors remain on alert. Whether the trend will continue or see a pullback by year-end, one thing is clear: gold fever is far from cooling down.
