Gold Rate Forecast: On Choti Diwali, gold and silver prices in bullion markets across the country witnessed significant fluctuations. Gold rates fluctuate daily, and both gold and silver prices experience daily volatility. In some cities, gold and silver have reached all-time highs. The price of 24-carat gold has surpassed ₹1.31 lakh per 10 grams, while silver has reached ₹1.90 lakh per kilogram. The gold market is currently in a state of panic. The question on many people’s minds is whether gold prices will decrease after Diwali and Chhath Puja. Some believe that gold prices will decrease after Diwali. Leading bank HSBC has made its own forecast regarding the price of gold.
HSBC Bank says that gold prices could reach $5,000 per ounce by the first half of 2026. Such factors as rising tensions worldwide, economic uncertainty, and the influx of new buyers into the market. Currently, the price of gold in the international market is slightly over $4,000 per ounce. This means that even after Diwali and Chhath Puja, gold and silver prices are expected to continue rising.
Why is the gold price rising?
The bank also stated that the rise in gold prices is due to heavy gold purchases by central banks, increased investment in ETFs, and expectations of lower interest rates in the US. Recently, spot gold prices crossed $4,300. This was the most substantial weekly gain for gold since December 2008.
When will the gold rate fall?
HSBC estimates that gold prices will remain high until early 2026. However, some softening or fluctuations in prices may be observed in the second half of the year. The bank’s report states that this upward trend is likely to continue until the first half of 2026. It could reach a high of $5,000 per ounce sometime in the first half of 2026. Currently, the price of 24-carat gold remains at ₹130,910 per 10 grams in most cities across the country. Meanwhile, the cost of 22-carat gold is over ₹98,290.
