September 26,2025
24 Karat Gold
Gold has always been much more than simply a metal. In India, gold comes up as representing wealth, culture and most importantly, financial security. This yellow metal is a household staple - whether it is used for jewellery or investment. We can witness gold prices rising over the last few years. Experts even believe that the gold price may touch Rs1.4 lakh for 10 grams sooner than people could understand.
What is behind this bullish outlook for gold? There are multiple long-term domestic and international factors that are moving gold's price ever higher. Central banks are buying gold aggressively, and economic uncertainty as well as inflation is also a factor.
The top reasons gold could reach Rs1.4 lakh sooner that you think:
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You can call the increased demand for gold by central banks around the world as the strongest forces that are driving the prices up. Some recent reports show that central banks purchased over 1,000 tonnes of gold during 2023, which is the largest annual purchase for over 50 years.
What is the reason for this? This move reflects the growing mistrust in US dollars and other fiat currency amid global debt and inflation.
The nations like - China, Russia and India, are steadily increasing the amount of gold they hold to protect their currencies from volatility and diversify their economies away from dollars.
Central banks stockpiling in gold creates a huge surge in demand. And this demand won't be going away anytime soon. It is a key reason why gold prices are expected to rise further and potentially reach the Rs 1.4 lakh mark.
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Gold is a time-tested safe haven during periods of uncertainty. And lets face it we are living in uncertain times:
Recession worries are looming over the global economy
High inflation in many countries
Instability because of geopolitical conflicts like - the Russia-Ukraine War and tensions in the Middle East
These factors make investors nervous when it comes to holding paper assets. Instead, they are turning to gold for safety. When economic or political instability rises, so does the price of gold. This pattern has been seen time and again and it is one of the strongest indicators that the current rally could take gold prices to Rs 1.4 lakh per 10 grams.
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As inflation eats away at the value of money, gold stands firm. Inflation in India and around the world has reduced the purchasing ability of consumers over the last year. This has led to people looking for ways to protect savings.
As a tangible, intrinsically valuable asset, gold acts as a hedge to inflation.
Currency depreciation is likely to occur as long as central banks continue to print money and maintain high levels of debt.
The more paper currency loses value, the more people will look toward gold, pushing prices higher.
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India has an unbreakable bond with gold. Weddings, festivals, and religious events drive massive gold consumption in the country. Even when prices are high, demand does not fall significantly - it simply shifts from jewellery to investment.
Recent trends show:
A rise in the purchase of Sovereign Gold Bonds and Gold Exchange-Traded Funds
The younger generation is becoming increasingly aware of gold as a long-term wealth-building asset
Gold demand is expected to increase as the economy of India expands and more people enter the middle class. This domestic demand combined with global trends will support and possibly accelerate the rally towards Rs1.4 lakh.
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While demand is growing, gold supply remains constrained. Mining companies are facing:
Higher extraction and environmental compliance costs.
Fewer new discoveries of large gold reserves.
Political instability in gold-producing regions.
All of this makes gold mining less profitable and more difficult, which limits new supply entering the market. A classic case of supply-demand imbalance when supply tightens and demand surges, prices are bound to rise.
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Gold is not just about jewellery anymore. It is now seen as a crucial part of a diversified investment portfolio:
It has low correlation with stocks and bonds.
It tends to perform well during market downturns.
It provides protection against systemic risk.
The institutional demand for gold is increasing in a scenario where financial advisors, wealth managers, and other professionals recommend it as a hedge. The increased investment by large funds as well as retail investors will likely contribute to the price increase in the next few months.
The inverse relationship - gold becomes more affordable for buyers of other currencies when the dollar falls, which increases demand.
The dollar faces pressure as US debt and economic challenges continue to increase.
Gold is more appealing globally, and especially in emerging markets.
All else equal, if the dollar remains weak, gold will move higher.
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Gold prices are rising, and more people are liquidating their gold to get cash, particularly in times of financial crisis or profit.
Gold cash exchange in India is booming as people are exchanging their unused jewellery to get immediate liquidity.
Many trusted gold buying company in Delhi and other large cities are supporting this trend by offering competitive rates and transparent procedures.
When more people will look forward to monetizing their gold holdings, it will add to the active market demand, adding to price momentum.
The writing is on the wall: multiple factors both global and domestic are aligning to push gold prices higher. With central banks buying aggressively, inflation showing no signs of slowing, and strong demand in India, golds journey to Rs 1.4 lakh per 10 grams seems more like a matter of when than if.
Whether you are an investor, a collector and want to know about new gold law in India or simply someone holding old gold jewellery, it is a good time to pay attention. If you are planning to sell, make sure to visit trusted gold jewellery buyers in Delhi like 24 Karat to get the best value. And if you are holding, sit tight the golden wave might just be getting started.
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We can witness that central banks are increasing gold reserves to protect themselves from inflation and global economic uncertainty and reduce their dependence on US dollars.
Gold is a tangible and stable asset that becomes more attractive to hedge against inflation, which drives up its price.
Analysts believe that this price target can be realistically achieved soon, given the strong demand, limited supplies, central bank purchases, and global instabilities.
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