Will Gold cross ₹1,50,000 in the upcoming months?

Synopsis: Gold has emerged as one of the market’s most surprising movers, driven by geopolitical tensions, tight physical supply and concerns over U.S. Federal Reserve independence. Citi expects strong investment momentum to sustain, potentially pushing gold prices past ₹1,50,000 in the coming months.

Gold, often called as the Yellow metal, has delivered one of the biggest market surprises of 2025. It has shocked investors by jumping more than 60 percent last year and has rallied more than 5 percent in the current year.

In this article, let’s take an analyst’s views on gold and explore the possibility of it reaching Rs. 1,50,000 per ten gram in the near future, considering the current market trends and investor sentiments. 

The recent surge in gold prices is largely driven by global economic uncertainty. Inflationary pressures, rising interest rates, and fears of a potential recession have made investors seek safe-haven assets like gold, which traditionally holds value during turbulent times. 

Additionally, geopolitical tensions in regions such as the Middle East and Eastern Europe have added to market volatility, further boosting demand for gold. Another factor contributing to the rise is the weakening of major currencies. Overall, a mix of economic, political, and currency factors has fueled the recent gold rally.

CITI on Gold

Multinational investment bank Citigroup has raised its short-term price outlook for gold and silver, with analysts projecting that gold could reach $5,000 per ounce within the next three months.

As Citi has stated that the gold could reach $5,000 per ounce within the next three months, let’s calculate it for the 10 grams. To find the price of 10 grams of gold at a target of $5,000 per ounce, we first converted the ounce price to a per-gram price by dividing $5,000 by 28.35 grams, giving approximately $176.35 per gram. 

Then, multiplying by 10 grams gave $1,763.5 for 10 grams. Finally, converting to INR at an exchange rate of 90 gave approximately Rs. 1,58,715. The current market price of gold futures on MCX is trading around Rs. 1,43,210, and Citi is giving a target of Rs. 1,58,715, indicating an upside potential of up to 10.8 percent.

Rationale 

Citi expects the bull market in precious metals to remain intact in the near term, supported by elevated geopolitical tensions, persistent physical market tightness, and renewed concerns over the independence of the U.S. Federal Reserve.

It also stated that it has upgraded the near-term price forecasts across the precious metals complex, as investment momentum remains robust and the range of bullish drivers is now likely to persist through the first quarter of 2026.

Industrial Metals Outlook

Beyond the March quarter, Citi’s base-case outlook assumes that easing geopolitical tensions will dampen hedging demand for precious metals later in the year, leaving gold the most vulnerable. In contrast, the bank expects industrial metals, particularly aluminium and copper, to continue to perform strongly.

The note said the bank continues to expect a neutral to modestly stronger US dollar, assuming the Federal Reserve’s political independence is preserved. Under a “Goldilocks” US growth scenario, portfolio hedging demand could ease, prompting outflows from precious metals into cyclical and risk assets such as equities. This would likely result in gold underperforming relative to silver, platinum group metals, and base metals, which have greater sensitivity to economic growth.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Will Gold cross ₹1,50,000 in the upcoming months? appeared first on Trade Brains.