Modi's Gold Appeal Spooks Prices but Won't Crash Market
Prime Minister Narendra Modi's appeal to citizens to avoid non-essential gold purchases has impacted commodity prices, but experts say it is unlikely to lead to a crash. In fact, bullion expert Ajay Kedia predicts that gold prices could move toward $5,100 per ounce by the end of 2026.
Gold and silver prices have already fallen in India after Modi's appeal. The price of 10 grams of 24-carat gold was quoted at ₹1.51 lakh, while one kilogram of silver was quoted at ₹2.28 lakh, according to the India Bullion and Jewellers Association (IBJA).
Kedia believes that the government's advisory may put pressure on India's physical demand for gold, similar to what happened after a similar appeal in May 2026. However, he notes that wedding-related purchasing is expected to remain strong due to India's cultural connection to gold.
Other experts also share a positive outlook for gold prices. Vishal Dholiya, Founder & Managing Director at Hastmilap & Aspiri, expects gold prices to hover around ₹1.55 lakh to ₹1.70 lakh per 10 grams by the end of 2026.