Gold Prices Near ₹1.21 Lakh per 10g: Expert View — Is It Time to Buy or Wait for a Dip?

Gold continues to sparkle even as other asset classes show fatigue, with prices hovering near record highs of ₹1.21 lakh per 10 grams on the Multi Commodity Exchange (MCX). As investors weigh inflation, global uncertainty, and central bank signals, the pressing question remains — should you buy gold now or wait for a correction?

Gold Holds Firm Amid Global Uncertainty

On MCX, December gold futures traded around ₹1,21,000 per 10 grams this week, while international spot prices on Comex stayed above $4,000 per ounce. The metal has consolidated after a strong multi-month rally driven by global risk aversion, a weakening US dollar, and robust central bank purchases.

According to analysts, gold’s resilience reflects a combination of macroeconomic factors. The US dollar index has dropped close to the 100 level, making gold cheaper for global investors and driving renewed interest. Meanwhile, escalating geopolitical tensions and concerns about slowing economic growth continue to keep safe-haven demand high.

Domestically, the rupee’s weakness near ₹84 per US dollar has added upward pressure on Indian gold prices, as the country imports nearly all of its gold. Combined with strong festive and wedding-season demand, these factors have kept the metal in high demand despite record valuations.

Expert Outlook: Range-Bound, But Bullish Tone

“Gold prices traded steady near ₹1,21,000 per 10 grams this week as the dollar remained weak around the 100 mark, while Comex gold held firm above $4,000,” said Jateen Trivedi, VP – Commodity and Currency Research at LKP Securities.

He added that gold is likely to remain volatile but range-bound between ₹1,18,500 and ₹1,24,000, with traders closely monitoring the upcoming US and India inflation data and Federal Reserve commentary.

In simple terms — while the upside potential remains, a clear breakout will depend on how central banks handle interest rates and inflation in the months ahead.

What’s Driving the Rally

• Weak US Dollar: Makes gold cheaper for global investors.

• Central Bank Buying: Continued accumulation adds demand pressure.

• Geopolitical Uncertainty: Heightened risk pushes investors toward safe assets.

• Rupee Depreciation: Raises domestic prices for imported gold.

• Festive & Wedding Demand: Seasonal buying remains steady despite high prices.

Should You Buy or Wait?

Analysts advise a cautious but optimistic approach. Short-term traders may prefer to wait for a pullback closer to ₹1,18,500 levels, but long-term investors view gold as a valuable hedge against inflation, market volatility, and currency depreciation.

With global tensions unresolved and monetary policies in flux, gold is expected to retain its shine through 2026. However, investors should be prepared for brief phases of consolidation before the next rally begins.

As Warren Buffett famously reminds — “Gold will always glitter, but it’s the patience of investors that turns glitter into gain.”