Gold Prices Near Rs 1 Lakh: More Gains Or Will The Shine Dim? What Experts Predict

Gold prices on MCX neared the Rs 1 lakh mark today as the day's high stood at Rs 99,178. This reflects a strong rally in 2025 as the gains of the precious metal have exceeded 30% year-to-date, according to Kedia Advisory.

Globally, gold prices have surged to an all-time high of $3,500 per ounce, according to Bloomberg, recording 2.22% gains today. Gold has become a more appealing asset in the face of increased fiscal, inflationary, and economic risk, as well as geopolitical risk.

The escalation of trade tensions has also heightened investor fear, which is expected to continue to pull in demand for gold as a safe haven asset.

Along with cues like the Dollar Index falling below 98 and geopolitical uncertainty, corrections in equity markets have made investors shift capital into gold. Now, given this rally is fueled by both domestic and global cues, a slowdown in prices may not be on the cards anytime soon.

"We are seeing spot gold likely headed towards the $3,540 and $3,737 levels in the upcoming months. While in the domestic market, MCX Gold futures are expected to reach the Rs 1,00,630 and Rs 1,02,050 levels," according to Anuj Gupta, head of commodities and currency at HDFC Securities.

"Gold could continue its upward momentum, possibly testing levels of $3,800 per ounce globally and Rs 1,10,000 per 10 grams locally," said Mangesh Chauhan, managing director and chief financial officer of Sky Gold.

Despite strong fundamentals, the current price zone appears overheated, according to Amit Gupta, senior research analyst of commodity, equity and currency at Kedia Advisory.

Gupta notes that the risk-reward ratio is unfavorable at these levels, especially as the technical indicators suggest overbought conditions.

"A healthy correction of around 7–8%—bringing prices down to Rs 91,000–Rs 92,000—may present a more attractive re-entry point for long-term investors," said Gupta.

"We do not expect a sharp correction, we can expect a 3-4% pullback in prices. Other than this, what could trigger a more deeper pullback is developments on the trade front," explains Kaynat Chainwala, assistant vice president of commodity research at Kotak Securities.

Referring to the trade deal negotiations and talks that Trump is having, the expert expects reactions to this.

"If things ease, it may weigh on gold prices but this is unlikely in the near term," she said.

Adding to this, Chainwala said that there is already profit booking that is happening, and it will continue as the precious metal touches new highs.

"It's wiser to book profits as waiting for a new peak will expose one to more volatility. The outlook still remains bullish, there is no change as things are still uncertain," she noted.