Gold prices in India recently soared past ₹1 lakh per 10 grams, setting a historic high before retreating slightly. As of now, 24-carat gold hovers around ₹98,500, leaving investors wondering, should they hold, sell, or buy more?
Why are gold prices rising?
The rally in gold is driven by global economic uncertainty, fluctuating interest rates, and geopolitical tensions. With these factors unlikely to fade soon, experts believe gold could climb even higher, possibly crossing ₹1 lakh again.
What should investors do?
Deveya Gaglani, Senior Research Analyst at Axis Securities, says gold has given stellar returns, up 25% domestically and 30% in commodity markets this year. However, he warns that prices are near an ‘overbought’ zone, meaning a short-term correction is possible.
- Long-term holders: If you have held gold for years, experts suggest keeping it as a hedge against inflation and currency risks.
- Short-term traders: Consider booking partial profits (30-40%) and re-entering if prices dip.
- New buyers: Wait for a correction. ₹99,500 is a strong resistance level, if gold stabilises above ₹1 lakh, it could rally to ₹1,03,000–₹1,05,000.
Akshaya Tritiya and wedding season demand
With Akshaya Tritiya (30 April) and the wedding season approaching, demand for gold remains strong. However, Suvankar Sen of Senco Gold notes that high prices are making buyers cautious, many are opting for smaller purchases.
Will gold be corrected soon?
Naresh Kataria, a seasoned investor, says gold has surged too quickly—25% above its 200-day average. A short-term pullback is likely, but the long-term trend remains bullish due to central bank buying and global risks.
Tejas Shigrekar of Angel One adds that ₹1 lakh is a psychological barrier. If global factors like US interest rate cuts ease, gold could see a 5-10% dip, making it a good ‘buy on dips’ opportunity.
Gold vs. Stocks: A smart mix
Kataria points out that rising gold doesn’t hurt stocks, it actually benefits Indian markets. Since households hold gold worth nearly India’s GDP, price surges create a ‘wealth effect,’ boosting consumer spending and indirectly supporting equities.
Gold’s rally is not over, but volatility is expected. Stay cautious, diversify, and avoid impulsive decisions.
