Will gold cross ₹2 lakh this year? Why prices are soaring and what buyers should know

From global tensions to Donald Trump’s aggressive policies, multiple factors are pushing gold and silver prices to record highs. Here’s a clear explanation of why prices are exploding and whether this is the right time to invest.

Gold has always held a special place in Indian households. From the poorest family to royal households, gold is seen as security, pride and tradition. For many, it is jewellery; for others, it is a long-term investment. But today, gold prices are giving a shock to everyone.

Gold has crossed ₹1.5 lakh per 10 grams, while silver has crossed ₹3 lakh per kilogram. Experts are now openly discussing whether gold will cross the ₹2 lakh mark within this year. This sudden and rapid rise has left families worried about weddings, savings and future purchases.

Just a year ago, in January, gold was trading around ₹75,000 per 10 grams. Within one year, prices have jumped by over ₹70,000. Silver has also tripled, rising from nearly ₹1 lakh per kg to above ₹3 lakh.

Also Read:Is Abhishek Sharma the most dangerous batter in T20 cricket right now?

This is not a normal rise, it is happening at rocket speed! 

Why Is gold rising so fast?

1. Trump’s global moves creating uncertainty

After returning to power, US President Donald Trump’s aggressive foreign and trade policies have shaken global stability. His attempts to gain control over Greenland, threats of heavy tariffs on European countries, and trade pressure on India and China have created fear in global markets.

2. Heavy tariffs on India, China and Europe

Trump has imposed retaliatory tariffs on goods imported into the US. Indian exports face up to 50% total duties, while China and European nations are also hit. This has slowed global trade and pushed investors towards gold as a safe option.

3. Rising war fears

The US action against Venezuela, threats against Iran, and ongoing global conflicts like Russia-Ukraine and tensions in the Middle East have increased fears of war. Whenever global tensions rise, gold prices move up sharply.

4. Stock markets in trouble

Trump’s policies have caused instability in global stock markets, including India. Investors are pulling money out of equities and shifting it to gold, which is considered safer during uncertain times.

Also Read:Gold and silver prices soar as Trump’s Greenland tariff threat triggers global market jitters

5. Pressure on US federal reserve

Trump has pushed the US Federal Reserve to reduce interest rates. This has weakened the dollar at times and increased the appeal of gold globally.

Other major reasons driving gold prices

International instability

Conflicts, political unrest and fear of new wars make investors choose gold over risky assets.

Central banks buying gold

Countries like India, China, Brazil and Poland are buying large quantities of gold. India alone holds over 880 tonnes. Central banks now treat gold as a key reserve asset.

Shift away from stock markets

Due to unpredictable global events, people no longer fully trust stock markets. Many prefer slower but safer returns through gold.

Fear of global economic slowdown

Economic crises in countries like Sri Lanka and Iran, along with fears of a global slowdown in 2026, are pushing people to secure their wealth in gold.

Also Read:Gold touches ₹1.40 lakh mark, silver shatters records across India as global surge lifts domestic prices

Low gold production

Gold supply is not increasing at the same pace as demand. High demand with limited supply is pushing prices sharply higher.

Should you buy gold now?

Experts advise caution. Gold prices may rise further, but sudden corrections are also possible. Avoid loans for gold investment. Buy only according to need and long-term planning.

For investors who bought earlier, this rise is a major gain. For new buyers, careful and gradual investment is advised.