Gold Prices Expected to Reach ₹1.63 Lakh per 10 Grams by Year-End

Gold prices are anticipated to soar to ₹1.63 lakh per 10 grams by the end of the year, according to Goldman Sachs. This forecast is influenced by increased purchases from central banks and expectations of lower interest rates in the U.S. Despite a predicted short-term decline, the overall outlook remains positive, with significant investment interest in gold surpassing jewelry demand for the first time. The March quarter saw a notable rise in gold consumption, highlighting a shift in market dynamics. Explore the detailed analysis and insights into the future of gold prices.

By Narendra Chaudhary May 1, 2026, 14:44 IST

Gold Price Forecast

According to Goldman Sachs, gold prices are projected to rise to ₹1.63 lakh per 10 grams by the end of this year. The American bank attributes this forecast to increased gold purchases by central banks worldwide and expectations of a decrease in interest rates in the United States. However, they also predict a short-term decline in gold prices.

Potential Increase in Global Gold Reserves

Goldman Sachs noted that geopolitical tensions and declines in stock and bond markets could impact gold prices in the short term. A survey conducted among 23 central banks revealed that 70% believe there will be an increase in global gold reserves over the next 12 months, while only 25% expect no change.

The bank anticipates that the Federal Reserve may reduce interest rates by 0.50%, which would support gold prices. Typically, a decrease in interest rates leads to increased demand for gold, positively affecting its price. However, on April 29, the Federal Reserve did not make any changes to interest rates.

Gold Prices Rise on April 30

On April 30, gold prices surged both domestically and internationally. In evening trading on the commodity exchange MCX, gold futures rose by 1.69%, reaching ₹1,51,566 per 10 grams. Internationally, gold increased by 1.80%, trading at $4,627 per ounce, while silver saw a jump of 3.22%.

Short-Term Pressure on Gold Prices

Geopolitical tensions have influenced gold prices, yet interest in gold as a safe investment remains strong. Research analyst Gaurav Garg from Lemon Markets indicated that buying activity has affected gold prices, although there may be short-term pressure.

Investment Demand for Gold Surpasses Jewelry Demand

On April 29, the World Gold Council reported that during the March quarter, investment interest in gold outpaced jewelry purchases in India for the first time. Sachin Jain, CEO of WGC India Operations, stated, "For the first time, investment demand exceeded jewelry demand."

10% Increase in Gold Consumption in March Quarter

In the March quarter, gold investment demand rose by 52% compared to the same period last year. Conversely, jewelry demand fell by 19.5%, totaling 66 tons. Overall, gold consumption in India increased by 10.2% to 151 tons during this period. Additionally, investments in gold ETFs surged by 186% compared to the previous year. Since the beginning of 2025, gold prices have doubled.