Gold may touch Rs 1.75 lakh per 10 grams by Diwali 2027, experts say

Gold prices are likely to climb further over the coming year, market experts have said. In their view, gold could rise by 20 to 40 per cent by Diwali 2027. Some experts also say the price of 10 grams of gold on the Multi Commodity Exchange (MCX) could go up to Rs 1.75 lakh.

The price of 10 grams of gold is currently about Rs 1.45 lakh, which points to a rise of about 20 per cent ahead. In the international market, gold is also expected to hover around $4,950 per ounce. According to the India Bullion and Jewellers Association (IBJA), if short-term swings are set aside and a longer view is taken, gold could see a strong gain of 30 to 40 per cent.

Several global factors are cited behind the rally. First, central banks around the world are continuously buying gold. In the third quarter of this year alone, they bought 321 tonnes, which is 42 per cent more than last year. Investment in gold ETFs is also rising, and their total holdings have reached a record 4,256 tonnes.

The second factor is US interest rate policy. If crude oil prices stay under control, it will help keep inflation low. The US Federal Reserve could then decide to cut interest rates in 2027. When rates fall, returns on bonds and the dollar decline, and investors naturally turn more towards gold.

Signs of a rally are also visible in the silver market. Silver supply is falling short of demand, so the silver market is likely to see a deficit for the sixth year in a row.

Experts say there are risks as well. If inflation in the US persists for a long time, or the Federal Reserve raises interest rates, the gold rally could slow somewhat. If the rupee strengthens, the rise in gold in the domestic market could also remain limited.

Gold has consistently given good returns over the past ten years. Around Diwali in 2016, 10 grams of gold cost Rs 30,590 in Delhi. By November 5, 2026, it had gone up to nearly Rs 1,45,915. That means the price of gold has risen about 4.77 times over the last decade.

Experts advise investors to hold 15 to 20 per cent of their total portfolio in gold. Rather than investing a large sum at once, it is beneficial to invest in stages through a SIP, or through gold ETFs and gold mutual funds. They also say the purpose of buying jewellery and the purpose of investing should always be kept separate.