New Delhi: Gold gave superb returns in 2025 and continues to be on the higher side in early 2026. However, scores of investors who pumped in money to buy
Gold are concerned over whether the precious yellow metal will continue to behave the same way in 2026, and also how investors hope to take exposure in the particular asset now. Speaking to News9, Ajay Suresh Kedia, the founder & director of Kedia Advisory, expressed his views on the reasons behind Gold price rally and also provided with Gold price target and Support level.
Gold Price Target
According to Kedia, Gold can go up to the level of Rs 1,65,000 for 10 grams in the Indian market, while the support level could be around Rs 1,12,000.
Gold Price Target Upside: Rs 1,65,000
Gold Price Support Level: Rs 112,000
Due to the pressure of profit recovery and the rise in the US dollar and bond yields, gold weakened. Today morning, gold was trading at Rs 137,698 with a slight decline of Rs 311 in the multi-commodity market. Profit recovery is being touted as the reason for the prices of precious metal coming down. In fact, the dollar index remains around a two-week high and the 10-year US Treasury yield has also risen. In such a situation, investors have recovered profits. A strong dollar makes gold expensive for foreign buyers, while high bond yields increase the cost of storing gold, which affects the demand for the yellow metal. Spot gold also appeared under pressure. Today, on January 8, it fell 1.02 percent to trade at $4,439 per ounce. Whereas spot silver fell 3.70 percent to 77.95 dollars per ounce.
Why Gold price has been on the rise
When asked to comment on why Gold prices have been on the rise in the last one year, Kedia said that the US Federal Reserve cut policy rates by a cumulative 75 basis points during 2025. The US 10-year real yields declined from ~1.6% to below 0.8% in 2025 and the US Dollar Index weakened nearly 7% year-to-date, supporting non-USD asset allocation, he added.
The expert attributed the jump in Gold prices to the purchasing of over 1,000 tonnes of gold in calendar year 2025. China increased official gold reserves by 225 tonnes, marking record annual accumulation. The emerging-market central banks accounted for over 70% of total global gold purchases. Global gold ETF holdings expanded about 18%, with net inflows exceeding 450 tonnes.
Listing some other reasons for the rise in Gold prices, Kedia said the US fiscal deficit crossed USD 2 trillion, raising long-term confidence concerns in fiat currencies, while the global government and private debt surpassed USD 315 trillion, reinforcing store-of-value demand.
“Inflation across major economies remained elevated near 3–4%, limiting real return assets. Heightened geopolitical conflicts increased risk-aversion indicators and safe-asset allocation throughout 2025. Strong institutional portfolio rebalancing toward diversification assets intensified amid equity-bond correlation breakdown,” were the other reasons for Gold prices to inflate.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
