Gold price will cross ₹2 lakh in 2026, these three reasons will become the reason for the big rise.
Know the main points and gist of the news at a glance
New Delhi If you are thinking of buying jewelery or investing in gold, then this news is for you. Because, gold can once again make a historic jump (Gold Price Prediction).
Global tensions, record central bank purchases and possible cut in interest rates, these three big factors can take gold to new heights in 2026.
Regarding this, global brokerage firm UBS has also given this year's target price (Gold Target Price 2026). According to UBS, gold can cross the mark of $ 6200 per ounce (Rs 1,98,484 per 10 grams in Indian currency).
Record purchase in 2025, now strong demand
According to UBS, central banks will buy 863 metric tons of gold in 2025. This figure may reach 950 tonnes in 2026. A huge investment of up to 825 tonnes is also expected in Gold ETF.
World Gold Council (WGC) data shows that total global demand in 2025 will cross 5000 metric tons for the first time. Rising incomes and demand for jewelery in Asia could support gold in the long run.
The supply is almost stable. Wood Mackenzie estimates that 80 mines will meet their current production plans by 2028.
Geopolitical tension will increase support
Oil prices reached their highest level since July due to increasing tension between America and Iran. Brent crude rose above $72 a barrel, currently at around $71.5, up about 4% from the beginning of the week.
US military deployment has increased in the Middle East and President Donald Trump has given Iran a 10-15 day warning on the nuclear deal.
In such an environment, investors look for a safe haven and gold is preferred as a traditional hedge. Gold is currently around $5,035 an ounce, up about 0.8% amid the recent tensions.
Also read- Pure Silver vs Sterling Silver: What is Sterling Silver, how different is it from regular silver? which one is best for you
Fed's relaxation can also give a boost
UBS believes that the cycle of interest rate cuts by the US Federal Reserve will continue. Two cuts of 25 basis points each are expected by September. A weak dollar and declining real yields are generally considered positive for gold.
How far can prices go in 2026?
UBS estimates that by mid-2026, gold may touch $ 6,200 an ounce (Gold Price Target 2026), although by the end of the year the price may reach $ 5,900 after some consolidation.
That is, it is clear that strong demand, limited supply, possible Fed cuts and increasing geopolitical risks, all these factors can push gold towards a big rise in 2026.
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