Gold may jump to ₹1.55 lakh per 10 gram in 2026: JM Financial VP
The gold market has been on a rollercoaster ride in recent years, with prices fluctuating wildly in response to changing economic conditions and global events. According to Pranav Mer, Vice President of JM Financial Services, gold prices could surge to ₹1.50-₹1.55 lakh per 10 gram on the Multi Commodity Exchange (MCX) in 2026. This prediction comes on the heels of a remarkable year for gold, with prices touching an all-time high of ₹1.40 lakh per 10 gram before ending at ₹1.39 lakh on Friday on the MCX.
While the prospect of gold prices reaching ₹1.55 lakh per 10 gram may seem daunting, it’s essential to consider the factors that could drive such a significant increase. Mer cautions that staggering returns like those seen in 2025 are not expected next year, suggesting that the gold market may experience a more moderate growth trajectory in 2026.
Several factors could contribute to the potential surge in gold prices, including ongoing economic uncertainty, geopolitical tensions, and the possibility of a recession. As a safe-haven asset, gold often benefits from investor nervousness and risk aversion, which can drive up demand and prices. Additionally, central banks and governments may continue to accumulate gold reserves, further supporting prices.
The US Federal Reserve’s monetary policy decisions will also play a crucial role in shaping the gold market in 2026. The Fed’s minutes, which provide insight into the central bank’s thinking and decision-making process, will be closely watched by investors and market participants. Any hints of a dovish stance or a pause in interest rate hikes could boost gold prices, as lower interest rates reduce the opportunity cost of holding gold and make it more attractive to investors.
Furthermore, the Indian government’s policies and initiatives could also impact the gold market in 2026. The government’s efforts to promote gold monetization, reduce imports, and increase domestic production could influence demand and prices. The introduction of new gold-related schemes, such as the Gold Monetization Scheme, could also provide a boost to the market.
In addition to gold, silver prices are also expected to rise in 2026, with Mer predicting that they could reach ₹2.75 lakh per kilogram. This would be a significant increase from current levels, driven by strong demand from industrial users, investors, and jewelry manufacturers.
For investors and market participants, the potential surge in gold and silver prices presents both opportunities and challenges. On the one hand, higher prices could provide a lucrative return on investment, especially for those who have been holding gold and silver for an extended period. On the other hand, the prospect of higher prices could also make it more challenging for new investors to enter the market, as they may be deterred by the high entry point.
To navigate this complex and dynamic market, it’s essential to stay informed and up-to-date on the latest developments and trends. Investors and market participants should closely monitor economic indicators, central bank decisions, and government policies, as these can significantly impact gold and silver prices.
In conclusion, the prediction that gold prices could jump to ₹1.55 lakh per 10 gram in 2026 is a significant one, and investors and market participants should take note. While the gold market is inherently volatile, and prices can fluctuate rapidly, the underlying factors driving this prediction are worth considering. As the global economy continues to evolve, and economic uncertainty persists, the appeal of gold and silver as safe-haven assets is likely to endure.
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