Gold Prices May Rally to ₹1.48 Lakh Despite Recent Correction

Vandana Bharti, an expert at SMC Global, believes that gold prices may rally to ₹1.48 lakh in one to two weeks despite a recent correction. According to her, the physical market is stronger than the paper market, with futures and options volumes remaining subdued but physical buying picking up across jewellery, central banks, and over-the-counter markets during the second quarter of 2026.

The decline in gold prices has encouraged value buying by institutional investors and exchange-traded funds (ETFs), although technical confirmation of a sustained rally is still awaited. Gold prices edged higher on Tuesday (August 4) as persistent uncertainty over the West Asia conflict boosted safe-haven demand, while investors awaited key US economic data for clues on the Federal Reserve's interest rate path.

Central banks remain key buyers of gold, with China and South Korea announcing fresh purchases. ETF buying has resumed in July following the correction in prices, and central banks have remained net buyers throughout, helping gold consolidate before its next move higher.