Gold Price: Gold crosses Rs 1 lakh, where can the price go in the next 12 months?

Gold Price: The deepening conflict between Israel and Iran has created a wave of uncertainty in global markets, and amidst this, gold prices have seen a historic jump. On Friday, the uptrend continued for the third consecutive day and gold jumped by Rs 2,200 to a record level of around Rs 1,01,540 per 10 grams in the national capital Delhi. This is the first time gold has crossed the Rs 1 lakh per 10 grams mark.

Now the big question is, can gold prices go up to Rs 1.25 lakh or even higher in the next 12 months? Looking at market analysts and global trends, this seems possible.

Why did the price of gold increase?

Geopolitical tensions:

Tensions in West Asia have increased further after Israel's attack on Iran's nuclear facilities. In such unstable conditions, investors usually move away from risky assets to safe investment options, and gold has historically been considered the most reliable safe haven.

Signs of slowdown in the US economy:

The recent inflation rate in the US has been lower than expected, indicating that the US Federal Reserve may cut interest rates in the future. A cut in interest rates weakens the dollar and increases the demand for gold, causing its prices to rise.

Global economic uncertainties:

Slow economic recovery in China and Europe, the prolongation of the Russia-Ukraine war and now tensions in West Asia—all these events have made investors cautious, increasing the inclination towards gold.

Domestic and international market reaction

Gold has crossed Rs 1 lakh per 10 grams for the first time on the domestic futures market MCX. This is considered to be the fastest and most comprehensive rally in the Indian market so far. This rally is not limited to India alone; gold prices are also rising continuously in international markets.

What's next?

The Bank of America (BofA) estimates that the international price of gold could reach $4,000 per troy ounce by 2025. At the same time, Goldman Sachs has also predicted that due to heavy purchases by central banks and geopolitical risks, gold prices may reach this level by mid-2026.

Its direct impact will be seen in India. If the dollar and crude oil prices remain stable and the rupee does not fall drastically, then in the next 12 months, gold in the Indian market can reach Rs 1.20 lakh to Rs 1.30 lakh per 10 grams.