Gold just hit a huge milestone – ₹1 lakh per 10 grams (including GST). It’s a number that sounded far away just a few years ago, but here we are.
So, what’s happening? Why is gold shooting up? And the big question — is this the right time to invest or is it too late to jump in?
Let’s break it down.
🔍 What’s Driving Gold’s Rally?
- Global Uncertainty: Whenever there’s tension – whether it’s geopolitical conflicts, elections, or economic slowdown – investors move their money to safer assets. Gold tops that list.
- Central Bank Buying: Many central banks, especially in countries like China and Russia, are increasing gold reserves. This steady demand keeps pushing prices up.
- Weakening Dollar: Gold prices tend to rise when the US dollar weakens. With the Fed hinting at rate cuts, gold gets an extra boost.
- Inflation Worries: Gold is a traditional hedge against inflation. With prices of daily items rising globally, people turn to gold to preserve value.
- Indian Wedding Season + Akshaya Tritiya: Domestic demand in India picks up during wedding seasons and festivals like Akshaya Tritiya. This adds more fuel to the already hot market.
📈 Is ₹1 Lakh the Peak or Just the Beginning?
That’s the big question. Here’s what we think:
- Gold has historically done well over the long term.
- Short-term corrections are possible – nothing goes up in a straight line.
- If inflation and global risks stay high, gold has room to go higher.
- But if the world calms down and interest rates rise again, gold may cool off.
💡 Should You Buy Now?
Here’s a balanced take:
✅ Yes, if:
- You’re buying with a long-term view.
- You want to hedge your portfolio.
- You’re not chasing quick profits.
❌ Avoid if:
- You’re buying out of FOMO.
- You plan to trade it short-term without understanding the market.
👉 A smart approach? Start small through SIPs in gold ETFs or sovereign gold bonds. Don’t go all in at once.
Final Thoughts
Crossing ₹1 lakh is big. But gold is not just about price — it’s about timing and patience. The rally is backed by strong fundamentals, but every rally sees corrections too.
So don’t get carried away by headlines. Think long-term, invest smart, and always keep your asset allocation in check.
Stay tuned to StockTalk India for more simplified insights on gold, stocks, and everything in between!
Disclaimer: This article is for educational purposes only. Please consult a SEBI-registered advisor before making investment decisions.