Gold prices may find strong support at the $3,800-$3,900 per ounce level, according to Chirag Sheth, global business head at Public Gold Bullion SG. Sheth believes a more sustained recovery could emerge in 2027, driven by central bank purchases and investment demand. Despite recent volatility and declines, long-term fundamentals for gold remain positive, he said. However, near-term volatility is expected to persist.
In the near term, gold could face selling pressure around $4,200-$4,300 per ounce, keeping the metal within a trading range. Gold-backed ETFs have seen inflows as prices approached $4,000, while physical demand has also picked up in some major markets. The outlook could improve in 2027 as global uncertainty eases and interest rate expectations become clearer.
In India, investment demand for gold has surged, accounting for 50-55% of total demand in some quarters, up from around 30%. Jewellery demand, however, remains subdued due to high prices, with consumers opting for lower-carat and lightweight designs. Festive season demand may offer some relief, but affordability issues could limit recovery.
Globally, recycled gold supply has increased as consumers sell at elevated prices. ETF activity is expected to remain strong over the next six months, while central bank purchases could pick up around the $4,000-per-ounce level. Long-term price support may come from sustained investment inflows and central bank buying, even if jewellery demand takes longer to recover.