Gold Investment Rises Sharply; Experts Predict Possible Price Correction
Gold Prices Surge Amid Strong Investment Demand; Experts Predict Gradual Correction
Gold continues to remain a preferred safe-haven investment among Indians despite sharp price fluctuations. According to the World Gold Council, gold investment rose by 20% to 91.6 tonnes, while the total investment value surged 74% from ₹51,080 crore to ₹88,970 crore, reflecting strong investor confidence amid global economic uncertainty.
Gold prices have witnessed a significant surge over the past year. On February 15, 2025, gold was priced at ₹7,890 per gram and ₹63,120 per sovereign. As of yesterday, prices increased to ₹14,560 per gram and ₹1,16,480 per sovereign, marking a sharp rise of ₹6,670 per gram and ₹53,360 per sovereign within a year. The price of a sovereign crossed ₹1 lakh by the end of 2025 and touched ₹1.30 lakh in January 2026 before beginning to fluctuate.
Market experts now indicate that gold prices may gradually decline in the coming months. Reports suggest that Russia may resume using the US dollar for international trade, potentially strengthening the dollar and reducing global demand for gold. Additionally, if central banks slow their gold purchases and overall supply increases, prices could soften.
Experts believe that if global conditions stabilise and demand weakens, gold prices in India could eventually fall below ₹1 lakh per 10 grams. However, any correction is expected to be gradual rather than immediate.
