Gold price crosses $5000 mark for the first time in the international market. Chances of crossing the $7000 milestone this year itself. Gold price has reached Rs.16 lakhs in Tulam. Are you thinking of buying something else? It has not gone beyond that yet. If you are thinking of buying something cheap, buy it now. Because.. the gold rush does not seem to be stopping anytime soon!
The value of a troy ounce of gold crossed the $5000 milestone for the first time on Monday. Market experts are warning that it will continue to rise. According to the London Bullion Market Association’s ‘Annual Precision Metals Forecast Survey’, the value of gold (ounce) is likely to cross the $7000 (about Rs.6.42 lakhs) mark in the international market this year.
The price of gold in our country crossed the five-figure mark for the first time in 2007. That is, the pound reached Rs. 10 thousand!! It took about 3-4 years to reach the Rs. 20 thousand mark. From there, it doubled.. that is, it took nine years to cross the Rs. 40 thousand mark. It took five years to reach the Rs. 80 thousand mark. Do you know how long it took to double from Rs. 80 thousand… that is, to reach the Rs. 16 lakh mark.? Just 1-2 years!
Usually, we calculate gold in coins, bars, and pounds. In the international market, that calculation is in ounces and the value is in dollars. Like the central banks of many other countries in the world… since 2022 (in the wake of its sanctions on Russia), our Reserve Bank has also increased its gold purchases significantly. Currently, our Reserve Bank has more than 880 tons of gold. Of this, about 512 tons of gold is domestic. About 348 tons of gold is kept in the custody of the Bank of England and the Bank of International Settlements. The rest of the gold is kept in the form of gold deposits. Please read other posts also.
While America is at the top of the list of countries with the highest gold reserves in the world with 8000 tons of gold. It is noteworthy that our India is at the eighth position with 880 tons. That is, 28.3495 grams. However, when calculating metals like Gold and Silver, they are calculated in troy ounces instead of the usual ounce. One troy ounce is 31.10.35 grams. If the price on Monday was 5000 dollars, it is approximately Rs. 46 lakhs. If it increases to $7000 (the price of a troy ounce is approximately Rs. 6.42 lakhs!), then the price of gold will reach Rs. 22 lakhs. These are available on the internet.
Only a few days have passed since the start of the new year (2026). In these few days, the price of gold has increased by 18%. You can understand the level of its aggression. In 2022, in the wake of Russia’s attack on Ukraine, the United States and European countries imposed strict sanctions on Russia and froze Russia’s foreign reserves in dollars, which created fear in many countries around the world.
“What if similar sanctions are imposed on us tomorrow?” Fearing that the US dollar will rise, central banks of many countries have started buying gold on a large scale to reduce their dependence on dollars. The extraordinary surge in gold prices that began then has increased even more with the drastic decisions taken by US President Trump.More information about these is available on the Internet.
As gold prices continue to rise, investors have become more interested in buying gold. Many people are buying gold with the idea that ‘if we don’t buy it now at a low price… gold prices will rise even more… and we will lose the profits from the increase’. In addition, the dollar is weakening. When the dollar weakens, investors look towards gold. This is also a major reason for the rise in gold prices.
Traditionally, a weak dollar and low US interest rates increase the attractiveness of non-yielding bullion. Economic and geopolitical uncertainty are also positive drivers for gold, because of its safe haven status and ability to be a reliable store of value. It has low correlation with other asset classes, so It acts as insurance in times of falling markets and geopolitical stress.
But given gold’s diverse and fluid demand drivers, the metal has recently served in its traditional role as a depreciation hedge – or protection against the loss of purchasing power of a currency due to inflation or currency devaluation – and as a low-yielding competitor to US Treasuries and money market funds.
Gold prices rose in 2025, driven by tariff uncertainty and strong demand from ETFs and central banks. Looking ahead, the outlook for the metal for 2026 and 2027 is bullish. Prices are expected to rise towards $5,000/oz by the fourth quarter of 2026, with the potential to rise to $6,000/oz in the long term.
Emerging market central banks are aggressively increasing their gold holdings to diversify away from the US dollar. Ongoing global conflicts and volatility are driving investors towards safer assets. A weaker dollar versus the The rupee is further pushing up domestic prices in India. Expected rate cuts by the US Federal Reserve in 2026 are reducing the opportunity cost of holding gold.