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The year 2025 marked one of the strongest rallies in gold in recent history, supported by heightened geopolitical risks, sustained ETF inflows, a weaker U.S. dollar, and continued accumulation by global central banks. These structural drivers are expected to remain relevant in 2026, providing a firm long-term underpinning to prices. However, with significant gains already realised, investors should factor in the possibility of interim price or time-based corrections, particularly if geopolitical tensions ease or global risk sentiment improves. Even so, gold retains potential for a further 10–12% upside, with prices gradually approaching the ?1,50,000 level. From a portfolio perspective, investors should continue to hold gold and add exposure in a disciplined SIP manner to manage volatility and improve average costs. Gold ETFs are recommended for investment efficiency, while physical gold is better suited for consumption-driven or ceremonial needs like marriages, or function.

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