The yellow metal is currently riding a "Super Rally" that has seen prices surge by over 60% in 2025 alone. Speaking on the trajectory of the market, WGC Chief David Tait noted that the current multi-year rally shows little signs of exhaustion. He attributed this bullish outlook to deep structural changes in global finance, including massive deregulation in China’s insurance markets and a generational wealth transfer in Japan, both of which are expected to funnel billions into gold-backed assets.
The move toward ₹1.90 lakh is fueled by a "perfect storm" of macroeconomic factors. Most significantly, global sovereign debt—currently exceeding $76 trillion—is creating a "flight to safety" among institutional investors. As confidence in traditional paper currencies wavers, central banks in developing nations are aggressively diversifying their reserves into gold. Furthermore, the rapid adoption of Gold ETFs in India and a weakening Rupee against the Dollar are providing a dual-engine push for domestic prices.
While retail jewelry demand in India has seen a slight dip due to affordability concerns, investment demand for coins, bars, and digital gold has hit record levels. Analysts suggest that if the U.S. Federal Reserve continues its path of rate cuts while global geopolitical tensions persist, the $6,000 per ounce target—and the subsequent ₹1.90 lakh domestic price—could become a reality much sooner than expected.
