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 various economic and geopolitical factors. However, according to Pranav Mer, Vice President of JM Financial Services, gold prices are expected to surge to new heights in 2026. In a recent statement, Mer predicted that gold prices could reach ₹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, which has seen prices touch an all-time high of ₹1.40 lakh per 10 gram before ending at ₹1.39 lakh on Friday on the MCX. While Mer’s prediction may seem bullish, it’s worth noting that he tempered his expectations by stating that the returns in 2026 are unlikely to be as staggering as those seen in 2025.
So, what’s driving the expected surge in gold prices? According to Mer, several factors are at play, including the ongoing economic uncertainty, geopolitical tensions, and the potential for inflation to rise. Additionally, the Federal Reserve’s monetary policy decisions, including the upcoming release of the Fed minutes, are likely to have a significant impact on gold prices.
In recent years, gold has emerged as a safe-haven asset, attracting investors seeking to diversify their portfolios and hedge against potential losses. As a result, gold prices have been highly correlated with economic uncertainty, rising when investors are risk-averse and falling when confidence returns. With the global economy still grappling with the aftermath of the COVID-19 pandemic, it’s likely that gold will continue to attract investors seeking a safe haven.
Another factor driving gold prices is the potential for inflation to rise. With many countries experiencing rising prices and wages, there is a growing concern that inflation could become a major issue in the coming years. Gold has traditionally been seen as a hedge against inflation, as its value tends to rise when prices are increasing. As a result, investors seeking to protect their portfolios from the effects of inflation may turn to gold, driving up prices.
In addition to these factors, the Federal Reserve’s monetary policy decisions are likely to play a significant role in shaping gold prices in 2026. The release of the Fed minutes, which provides insight into the central bank’s thinking on interest rates and monetary policy, is likely to be closely watched by investors. If the Fed indicates that it will maintain a dovish stance, gold prices could rise, as lower interest rates make gold more attractive to investors.
While Mer’s prediction of gold prices reaching ₹1.50-₹1.55 lakh per 10 gram may seem aggressive, it’s worth noting that gold prices have been trending upwards for several years. With the ongoing economic uncertainty, geopolitical tensions, and potential for inflation to rise, it’s likely that gold will continue to attract investors seeking a safe haven.
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 prediction is based on the idea that silver, like gold, will benefit from the ongoing economic uncertainty and potential for inflation to rise.
In conclusion, the gold market is expected to continue its upward trajectory in 2026, with prices potentially reaching ₹1.50-₹1.55 lakh per 10 gram. While the returns may not be as staggering as those seen in 2025, it’s clear that gold will remain a popular asset among investors seeking a safe haven. With the ongoing economic uncertainty, geopolitical tensions, and potential for inflation to rise, it’s likely that gold will continue to attract investors seeking to diversify their portfolios and hedge against potential losses.
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