In a standout year for commodities, gold has recorded its strongest annual performance in 46 years, surging approximately 65-70% amid persistent geopolitical tensions, central bank buying, expectations of further interest rate cuts, and a weaker US dollar.
Spot gold prices have climbed from around $2,600 per ounce at the start of 2025 to recent levels near $4,350, with record highs exceeding $4,370 earlier in the year. On India’s MCX, gold futures have reflected this global strength, trading around ₹1,34,000-1,35,000 per 10 grams in recent sessions, supported by sustained domestic and international demand.
“Gold has benefited from its role as a portfolio diversifier and safe-haven asset in an environment of uncertainty,” noted analysts from firms like Ventura Securities. The metal has shown resilience, often consolidating at higher levels after pullbacks, reinforced by the US Federal Reserve’s rate cuts and ongoing central bank purchases aimed at diversifying reserves away from dollar-denominated assets.
The Fed’s accommodative stance has tightened gold’s inverse relationship with real yields, boosting investor demand. However, experts caution that surprises—such as hawkish Fed signals, a stronger dollar, or easing geopolitical risks—could trigger short-term volatility.
Is Gold Vulnerable to a Correction in 2026?
While an outright collapse appears unlikely given intact fundamental drivers, analysts acknowledge vulnerability to pullbacks after such a sharp rally.
Ross Maxwell from VT Markets highlighted that, following a 70%+ increase, gold is prone to corrections, though core supports like global uncertainty, central bank demand, and currency weakness should prevent a deep crash. Similarly, experts view any dips as shallow and temporary, offering buying opportunities for long-term investors rather than signaling a reversal.
Triggers for short-term profit-taking could include delays in expected rate cuts, a US dollar rebound, or reduced tensions in key hotspots. Gold’s appeal as a hedge against uncertainty, combined with robust central bank buying, continues to underpin prices.
Current Gold Prices in Delhi (as of December 20, 2025)
Here are two interactive charts visualizing the latest gold rates per gram for different purities in Delhi. Prices are stable with no change from yesterday.
Gold Price per Gram by Purity
Current Gold Prices in Delhi (as of December 20, 2025)
Detailed breakdown (no daily change):
- 24 Carat (Pure Gold): ₹13,433 per gram / ₹1,34,330 per 10 grams
- 22 Carat: ₹12,315 per gram / ₹1,23,150 per 10 grams
- 18 Carat: ₹10,079 per gram / ₹1,00,790 per 10 grams
Here are two interactive charts visualizing the latest gold rates per gram for different purities in Delhi. Prices are stable with no change from yesterday.
Gold Price per Gram by Purity
Investment Strategy for Gold Allocation
For long-term investors, gradual accumulation on dips remains a recommended approach. Technical levels suggest potential resistance near recent highs, with supports providing entry points for bullish positions.
Analysts like those from Ventura advise viewing corrections as healthy, while others recommend dollar-cost averaging (DCA) for new entrants and partial profit-taking for those with gains, maintaining core holdings for hedging against volatility.
Overall, the structural bull case for gold persists into 2026, with many forecasting further upside amid ongoing diversification trends.
Disclaimer: This article is for informational purposes only. Views expressed are based on market analysis and not investment advice. Investors should consult certified professionals, as markets are volatile and individual circumstances vary.
