Gold Price May Touch ₹2 Lakh in India Despite Hawkish Central Banks

Gold prices have been on a rollercoaster ride in India, with prices touching as high as ₹1.93 lakh per 10 grams this year despite hawkish central banks worldwide.

The question now is whether gold can touch the psychological level of ₹2 lakh per 10 grams in the near future. To understand why this number doesn't seem far-fetched, let's look at the road already traveled by gold prices.

Gold started 2026 at around ₹1,30,000 per 10 grams before scaling an all-time high of ₹1,80,930 in retail markets on January 29, 2026. While it briefly touched ₹1,93,096 intraday amid geopolitical tensions and a Fed rate pause, the rally didn't hold.

Currently, gold is trading at roughly ₹14,316 per gram, or about ₹1,43,166 for 10 grams, meaning bullion needs to climb close to 40% from here to actually touch ₹2 lakh. This is no easy feat, especially when global central banks are leaning hawkish rather than dovish.

However, three tailwinds are overriding this rate headwind: central bank buying itself, oil-and-conflict shock rattling rate-setters, and domestic factors specific to India. Central banks worldwide have been steadily accumulating gold reserves, a trend that puts a floor under prices regardless of interest rates.

Indian brokerages are divided between near-term caution and structural optimism, with some predicting a Goldman Sachs-style target around $5,400 per ounce could put domestic gold anywhere between ₹1.7 lakh and ₹1.9 lakh. However, others see the decline from January's peak as a corrective consolidation rather than a new breakout.