Fear of correction after big rise in gold, what should investors do?

Buying gold on Akshaya Tritiya is considered auspicious, but this time the prices have forced investors to think. While in 2025, the price of 22 carat gold was around ₹ 95,500 for 10 grams, in 2026 it has increased to ₹ 1,52,000. That means a growth of more than 50% has been seen in just one year.

A journey full of ups and downs in 2026

Gold gave excellent returns of about 65% in 2025 and the beginning of 2026 was also strong. On January 29, its price reached ₹ 1,75,000 in India and $ 5,602 in the international market. However, the war situation related to Iran changed the direction of the market. Contrary to popular belief, gold began to decline during the war. The main reasons for this were investors selling gold to raise cash and the strengthening of the US dollar.

impact of dollar and oil

Due to the rise in oil prices, the demand for dollars increased because globally oil is traded in dollars. This strengthened the dollar index and put pressure on gold. As a result, gold fell by about 20% from its peak. However, after the recent announcement of ceasefire, oil prices have softened, due to which some recovery has been seen in gold.

The way forward: bullish or bearish?

Big financial institutions still have a positive view on gold. Goldman Sachs estimates that gold could reach $5,400 by the end of 2026. According to UBS it can reach $5,900. According to experts, possible interest rate cut in America and weakness of the dollar can support gold. However, inflation figures and global situation will decide the future direction.

understand the risks too

History is witness that there can be a big fall in gold. After a huge rally in the 1980s, gold fell by more than 50%. Even at present, many factors like interest rates, dollar, central bank purchases and geo-political tensions are influencing the prices.

advice for investors

If you do not have gold in your portfolio, then you can start from this Akshaya Tritiya. But avoid making big investments at once. Keeping 10-15% of the total investment in gold is considered a balanced strategy. Gold ETF can be a better option instead of physical gold, because there is no making charge in it and investment is easy.

Gold is currently in uncertain times. Recently there was a rise, then a decline and now stagnation. In such a situation, it is wise to invest wisely and be prepared for the ups and downs of the market.

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