Will gold rates hit Rs 1 Lakh? Anuj Gupta answers, shares smart way to invest now

Gold has been on an unrelenting uptrend, and it is considered that the much-awaited Rs 1 lakh per 10 grams level cannot be far behind. With central banks still piling up gold, geopolitical uncertainties continuing, and inflation fears persisting, the gold rally continues unabated. Anuj Gupta, Head of Commodities and Currencies, HDFC Securities, is positive about gold's sustained rally based on sturdy demand, global uncertainty, and central bank buying.

Now investors are investing in gold as an investment

During an interaction with media, Gupta pointed out that gold's strong uptrend over the last five years is largely on account of rising investment demand as opposed to jewelry consumption alone. "Now investors are investing in gold as an investment, not as ornaments, so we experienced a massive demand in gold bars, in gold coins, the demand is growing," he said. This trend has driven global gold prices to all-time highs, with MCX prices now ranging around Rs 88,350 per 10 grams and international spot prices around Dollar 3,012 per ounce.

Can gold reach Rs 1 lakh?

With gold rates consistently moving towards higher price bands, most investors are wondering if Rs 1 lakh for every 10 grams is possible. Commenting on this, Gupta said, "Yes, see, I can't say presently, but yes, certainly, as the long-term horizon, it may test Rs 1 lakh."In the short run, however, he believes that gold will touch Rs 90,700-91,000 per 10 grams on MCX and Dollar 3,200 per ounce abroad by the financial year end. "The overall trend remains bullish. Since January 2025, only gold and silver have been better than other asset classes," he observed. Technical View:

Is gold in a bubble?

In spite of fear that gold is overbought, Gupta rejected the notion of a price bubble. "Gold is not for selling purposes; people always buy gold for holding," he stated. He elaborated that in India, gold is sold seldom for monetary motives sales are mostly made to trade in older jewelry for new styles, and thus supply remains constrained in spite of price rises. Talking about price correction, he emphasized that gold has been changing its price band continuously. "Three months ago, it was in the Dollar 2,600-Dollar 2,700 band, now it is in the Dollar 2,900-Dollar 3,000 band. Whenever we spotted a correction, it was only 20-30%."He hinted that if gold corrects to Dollar 2,800 an ounce, then it may be a buying opportunity. 

Investment Strategy: How to buy gold now?

Gupta is urging investors to invest in gold on a long-term basis and not make bulk investments at current high levels. He suggested the SIP route, saying, "Gold is an investment process. If one wishes to invest in gold, he can begin with 10% at the present level and invest more on each correction."

Why gold prices are increasing?

Gupta blames the gold price rally on several factors, with safe-haven demand and central bank accumulation being the largest drivers. He said, "The demand is the main reason that gold prices are increasing in the last almost five years." Also, increasing geopolitical tensions and macroeconomic uncertainties are keeping gold in the limelight.

Talking about central bank buying globally, Gupta noted that "Even we have seen a lot of central banks adding gold to their holdings. China was also accumulating gold for their central bank. So, certainly, there are a lot of small economies where central banks are accumulating gold. Even India is also accumulating gold for their reserves."