Amid volatility in gold prices, should you invest now or wait? Know what experts suggest on prices and returns
Gold has traditionally held a special place in India. Indians have long been emotionally attached to the precious metal, not just because of its market value but also because of its cultural and emotional significance. However, gold prices have been highly turbulent lately. The precious metal touched a peak in January this year, reaching almost Rs 1,83,000 per 10 grams. Since then, amid the US Iran war and changing global market conditions, gold prices kept sliding. However, over the last one month, gold has gained around Rs 20,000 per 10 grams. The sharp recovery has left investors puzzled about whether they should invest in gold or not.
Gold remained under pressure since January
Gold prices in domestic markets have remained under sustained pressure since January, in line with the fall seen in international markets. Traditionally, gold acts as a safe haven asset during wars and uncertain situations, with investors often moving towards the yellow metal. However, this time, gold behaved differently. Despite the US Iran war and global uncertainty, prices remained under pressure for several months. August, however, proved to be auspicious for the precious metal, and gold gained significantly.
Despite Prime Minister Narendra Modi’s appeal to people not to buy gold, prices of the yellow metal rose in September. Recently, he had urged people to limit gold purchases, as higher gold imports increase the country’s import bill and put pressure on the economy.
What should be the investment period?
According to SEBI registered market expert Anuj Gupta, “outlook for gold looks brighter. He said that people who want to invest in gold should consider a three to five year investment horizon, as a shorter term may not serve much of the purpose. Gold is expected to touch Rs 1,65,000 per 10 grams in the domestic market during Diwali. In the international market, it could touch the USD 4,500 level.”
Should you buy jewellery or invest in gold?
Gupta said that gold purchases should depend on the investor’s needs. If someone wants to buy gold jewellery for an upcoming occasion, they can consider buying jewellery. However, from an investment perspective, digital gold and gold ETFs can serve the purpose better. According to him, gold may touch Rs 3,00,000 per 10 grams in three to five years. Therefore, investment prospects remain positive.
What is the international outlook for gold?
According to commodity expert Ajay Kedia, “although some correction is being witnessed in gold prices in the domestic market, the international outlook for the yellow metal remains brighter. Therefore, investing in gold can still be considered a good option, as the fundamentals of the precious metal remain strong.” He also said that gain of more than 200% since September 2022 may appear to suggest that the easy money has already been made. However, the ongoing behavior of central banks suggests the move may represent more than a normal commodity rally.
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First published on: Sep 03, 2026 04:51 PM IST
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