Gold Price Explosion 2025–2026: Will the Yellow Metal Break All Records and Cross ₹1.25 Lakh Per 10 Grams?
From ₹3,633 Surge in 3 Days to ₹1.25 Lakh Milestone – The Untold Story of Gold’s Biggest Boom in 2025–2026
Gold has always been considered a safe-haven asset, and its rising value continues to capture the attention of investors across the globe. In the first three days of September alone, gold prices surged by ₹3,633 per 10 grams, signaling a strong bullish trend. Silver has also seen a significant jump of ₹5,648 per kg. With these rapid gains, the precious metal market is heating up, raising expectations that gold could soon touch the milestone of ₹1.25 lakh per 10 grams. The outlook for 2025 and beyond paints a picture of steady growth, fueled by global uncertainties, currency fluctuations, and investment demand. This article dives deep into the factors driving gold prices, expert predictions, and what investors should anticipate in the coming months.
Gold Prices Soar in Early September 📈
September 2025 began on a striking note for bullion investors. Gold, which closed at ₹1,02,388 per 10 grams at the end of August, surged to ₹1,06,021 per 10 grams within three days, marking one of its sharpest increases this year. Silver too maintained its upward momentum, closing at ₹1,17,572 per kg. Analysts believe if this pace continues, gold could easily breach the ₹1.25 lakh mark in the first half of 2026.
Expert Forecasts for 2025–2026 🔮
According to ICICI Bank’s Economic Research Group, gold is projected to trade between ₹99,500 and ₹1,10,000 per 10 grams in 2025. The forecast also suggests that prices could climb to between ₹1,10,000 and ₹1,25,000 during the first half of 2026. These projections are based on both domestic and international factors, including currency movements and global demand for safe-haven assets.
The outlook becomes more complex when factoring in the rupee’s exchange rate against the US dollar. If the rupee weakens beyond the expected range of 87.00 to 89.00 per dollar, gold may gain additional momentum, further boosting prices.
Global Trends Supporting the Bullion Rally 🌍
Globally, gold has already risen by nearly 33 percent in 2025, making it one of the most lucrative assets of the year. International bullion prices are expected to average between $3,400 and $3,600 per ounce for the rest of 2025 and potentially climb to $3,800 per ounce in early 2026.
Geopolitical uncertainties remain a major driver. Any escalation in global conflicts or economic instability could push these price ranges even higher, as investors flock to gold for security.
Reduced Purchases but Strong Demand 💰
Interestingly, while purchases of physical gold have slowed due to reduced trade war fears, investment demand remains strong. Much of the rally is now being influenced by US economic developments. The Federal Reserve is expected to implement a 125-basis-point rate cut by 2025–26, which would weaken the dollar and make gold even more attractive.
Domestically, the weak rupee has also played a crucial role in driving prices higher. Together, these factors are creating an environment where gold continues to shine as a leading investment option.
Will Gold Reach ₹1.25 Lakh? 🚀
The possibility of gold hitting ₹1.25 lakh is no longer a distant dream but a likely scenario if the current momentum continues. Both global and domestic trends indicate that the precious metal is on track to achieve this milestone within the first half of 2026. Investors should, however, remain cautious of fluctuations tied to currency volatility and economic policy changes.
FAQs ❓
1. Why are gold prices rising so rapidly in 2025?
Gold prices are surging due to a weak rupee, global economic uncertainties, strong investment demand, and expectations of US Fed rate cuts.
2. What is the projected price range of gold in 2025?
Analysts predict gold will trade between ₹99,500 and ₹1,10,000 per 10 grams in 2025.
3. Will gold really touch ₹1.25 lakh by 2026?
Yes, according to ICICI Bank’s Economic Research Group, gold could reach ₹1,25,000 per 10 grams in the first half of 2026 if the bullish trend continues.
4. How much have global gold prices increased in 2025?
Global gold prices have risen by nearly 33 percent so far in 2025, with further increases expected in 2026.
5. What role does the US dollar play in gold prices?
A weaker US dollar makes gold cheaper for international buyers, pushing demand and prices higher. The Fed’s expected interest rate cuts are a major factor in this trend.
Conclusion 🏆
Gold’s rally in 2025 has already delivered strong returns to investors, and its upward journey shows no signs of stopping. With projections pointing toward ₹1.25 lakh per 10 grams by early 2026, the yellow metal remains one of the safest and most rewarding investment avenues. Whether driven by a weakening rupee, global uncertainties, or rate cuts in the US, gold continues to glitter as the ultimate hedge against volatility.
