Gold up about 3% in five days, but experts caution against hasty buying

Gold prices in India have started rising again. After an abrupt sharp fall earlier, gold has become about 3 per cent costlier over the last five days of trading. Seeing prices climb steadily, people are asking whether rates will surge again and whether this is the right time to invest.

Experts say it would be hasty to take a few days of gains as the start of a new, long rally in gold. Despite the recent rise, investors should remain cautious. Demand for gold rises around festivals such as Diwali and Dhanteras in India, and this affects prices too. Even so, a few days of gains cannot be taken to mean a long rally has returned to the market. The state of the global economy could also pose a challenge for gold prices.

According to the data, the price of gold in India on January 1, 2026 was about Rs 1,32,941 per 10 grams. By November 6 it had reached an estimated Rs 1,41,032. That means gold has risen about 6 per cent so far this year.

Looking back, the average price of gold in November 2022 was about Rs 50,000 per 10 grams. In January 2026, the price touched a high of Rs 1.76 lakh. This means gold has delivered excellent returns over the long term in the past few years.

The focus is now on the US Federal Reserve. The market estimates a 70 per cent chance that the Federal Reserve will raise interest rates in December. If rates go up, investment options that pay interest may look more attractive to investors than gold, and this could affect demand for gold.

Investors should watch geopolitical tensions, crude oil prices, inflation, interest rates, bond yields and the US dollar. All of these are linked to one another, and changes in them can move gold prices up and down.

Gold is traded in US dollars in the international market. So if the dollar strengthens, pressure can come on gold prices, while a weaker dollar supports gold. Crude oil is also important. Crude is currently about $98 a barrel in the international market. If oil prices stay high, the risk of inflation rises, and central banks may then take a tougher stance on interest rates.

Experts say people should not rush to put money into gold on the strength of just five days of gains. Long-term expectations for gold are positive, but the market may see ups and downs in the near term. Before investing, it is essential to consider one's needs, risk appetite and financial advice.