Record-Breaking Gold Surge
Gold's value has demonstrated significant gains, marking a remarkable year. During a recent trading session, gold reached an impressive high of $5,092.70.
This surge is part of a larger trend, as gold has already gained 17% this year. In 2025, it performed exceptionally well, recording a 64% rise, which translated into considerable returns for investors. This upward trajectory has led to heightened interest and discussion among investors and financial experts. These substantial gains have underscored gold's position as a valuable asset in the current financial landscape.
Geopolitical Impact & Forecasts
Geopolitical events are playing a significant role in influencing gold prices. Ongoing disputes between the US and NATO, particularly regarding Greenland, are unsettling global markets. Concurrently, concerns regarding the independence of the US Federal Reserve are prompting investors to seek safe-haven assets. Philip Newman, Director at Metals Focus, has suggested that political uncertainty could escalate with the upcoming US midterm elections. Experts predict further growth. Goldman Sachs has raised its 2026 forecast to $5,400, while some analysts believe gold could peak at $6,400 this year. These forecasts reflect the complex interplay of economic and political factors driving the gold market.
The Rs 9 Lakh Prediction
The prediction of gold prices reaching Rs 9 lakh per tola has ignited widespread discussion. This bold claim comes from renowned financial expert and author of _Rich Dad Poor Dad_, Robert Kiyosaki. This is nearly five times the current level. While he did not provide a specific timeline, he suggested that gold could witness substantial growth. Currently, the price of gold for ten grams has already surpassed Rs 1.62 lakh. This prediction has captured the attention of investors, creating much speculation. The prospect of such a high value has added an intriguing layer to the discussion around gold's future.
Driving Factors: Demand Dynamics
Several factors are contributing to the surge in gold prices. The aggressive buying by central banks worldwide is a key driver. Many developing nations are increasing their gold reserves to reduce reliance on the US dollar. According to Goldman Sachs, central banks are purchasing an average of 60 metric tonnes of gold each month. Poland's decision to raise its reserves to 700 tonnes highlights this growing trend. This is fueled by global uncertainties. Alongside governments, private investors are also showing strong interest in gold ETFs. In 2025 alone, nearly $89 billion has flowed into this sector. The anticipation of interest rate cuts in the US is also playing a role, leading investors to view gold as a more attractive option compared to bonds.
Market Reactions & Outlook
The rising prices are causing a shift in consumer behaviour, impacting jewellery sales, especially among middle-class buyers. However, investment in small gold bars and coins has significantly increased, particularly in India. Retail investors perceive gold as a safe asset, mainly because it allows direct investment without the complexities of analysing company balance sheets. The current market sentiment suggests that gold demand will remain robust unless the global economy stabilises. The prevailing view among experts is that unless the interest rate-cut cycle halts, major fluctuations in gold prices appear unlikely. Even temporary dips are seen as buying opportunities. Experts are confidently backing the possibility of gold prices touching Rs 2 lakh, with some forecasting up to Rs 2.5 lakh.
