Image Source : Free Press Journal
Gold has surged an extraordinary 73% year-to-date, its strongest annual performance since 1979. Prices on the MCX touched a record ₹135,590 per 10 grams, driven by geopolitical tensions, easing interest rates, and trade uncertainties. Analysts now debate whether bullion’s meteoric rise is sustainable or due for correction in 2026.
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Gold has been the standout performer in 2025, delivering its sharpest gains in nearly five decades. Investor appetite for safe-haven assets, combined with macroeconomic tailwinds, has propelled bullion to historic highs. As markets look ahead, the central question remains: will gold continue to shine, or face a cooling-off period?
Key Highlights
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Gold prices jumped 73% YTD, the sharpest rise since 1979.
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MCX prices peaked at ₹135,590 per 10 grams, closing near ₹134,200.
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Rally driven by geopolitical uncertainty, easing global interest rates, and tariff disputes.
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Since October 2023, gold has more than doubled (up 139%), raising fears of overheating.
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Analysts caution that while gold remains a portfolio stabilizer, it should not be treated as a momentum trade.
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Outlook for 2026 suggests potential corrections if monetary tightening resumes or geopolitical risks ease.
Sources: Livemint, DW Asset Management, BasuNivesh
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