Gold may jump to ₹1.55 lakh per 10 gram in 2026: JM Financial VP
The gold market has been a topic of interest for investors and traders alike, with prices fluctuating constantly. Recently, gold futures touched an all-time high of ₹1.40 lakh per 10 gram before ending at ₹1.39 lakh on Friday on the Multi Commodity Exchange (MCX). According to Pranav Mer, Vice President at JM Financial Services, gold prices are expected to surge even further, reaching ₹1.50-₹1.55 lakh per 10 gram on the MCX in 2026. However, Mer also cautioned that the staggering returns seen in 2025 are not expected to repeat next year.
The prediction of gold prices reaching ₹1.55 lakh per 10 gram is based on various market trends and economic indicators. The US Federal Reserve’s monetary policy decisions, inflation rates, and the overall global economic scenario are some of the key factors that influence gold prices. Mer’s prediction suggests that these factors will contribute to a significant increase in gold prices over the next year.
One of the primary drivers of gold prices is the US Federal Reserve’s monetary policy. The Fed’s decision to raise or lower interest rates has a direct impact on gold prices. When interest rates are low, gold becomes a more attractive investment option, leading to an increase in prices. On the other hand, high interest rates make gold less attractive, causing prices to drop. With the Fed’s monetary policy decisions being closely watched by investors, any changes in interest rates will likely have a significant impact on gold prices.
Inflation is another key factor that affects gold prices. Gold is often seen as a hedge against inflation, as its value tends to increase when inflation rises. With inflation rates expected to remain high in the coming year, gold prices are likely to benefit from this trend. As investors seek to protect their wealth from the eroding effects of inflation, they are likely to turn to gold, driving up prices.
The global economic scenario is also a crucial factor in determining gold prices. Economic uncertainty, trade tensions, and geopolitical conflicts can all contribute to an increase in gold prices. As investors seek safe-haven assets during times of uncertainty, gold is often the go-to option. With the global economy facing numerous challenges, including the ongoing COVID-19 pandemic, trade tensions, and geopolitical conflicts, gold prices are likely to remain supported.
In addition to these factors, the Indian government’s policies also play a significant role in determining gold prices. The government’s decision to impose duties and taxes on gold imports can impact prices, as can changes in the country’s gold import policies. Any changes in these policies will likely have a direct impact on gold prices in India.
While Mer’s prediction of gold prices reaching ₹1.55 lakh per 10 gram is significant, it’s essential to note that the returns seen in 2025 are not expected to repeat next year. The gold market is known for its volatility, and prices can fluctuate rapidly. Investors should be cautious and not expect the same level of returns in 2026.
In conclusion, gold prices are expected to surge to ₹1.50-₹1.55 lakh per 10 gram on the MCX in 2026, according to JM Financial Services VP Pranav Mer. While this prediction is based on various market trends and economic indicators, it’s essential to approach the gold market with caution. The US Federal Reserve’s monetary policy decisions, inflation rates, and the global economic scenario will all play a significant role in determining gold prices over the next year. As investors, it’s crucial to stay informed and adapt to changing market conditions to maximize returns.
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