Can Gold Prices Rebound to Rs 1.5 Lakh per 10 Gram?

Gold prices have witnessed a significant correction after recently touching all-time highs, with today’s MCX gold price at approximately Rs 1,20,957 per 10 grams (9:51 A.M as of October 28, 2025). The recent rally and subsequent correction are shaping market sentiment, investment strategy, and the outlook for precious metals while sparking renewed interest in products like MCX BullDEX options.

Recent Gold Price Correction

After reaching a record high of Rs 1,32,294 per 10 grams on October 17, 2025, domestic gold prices experienced a sharp pullback, falling almost Rs 11,000 per 10 grams to the current market price. Today, MCX gold futures are trading around Rs 1,20,957 per 10 grams, representing a decline of nearly 9% to 10%. Factors behind this correction include profit booking, a stronger US dollar, and a brief softening of gold demand in key markets like India and China. Despite this, the annual surge stands at more than 65%, reflecting a robust uptrend for gold in CY2025 (Calendar Year).

Driving Factors for the Rally in Gold Prices

Several structural and cyclical forces that continued to propel gold prices higher:

• Central Bank and ETF Demand: Increasing purchases by global central banks and strong inflows into gold-backed ETFs have provided support for gold prices, with institutional investors actively adding to positions for diversification and macro hedge purposes.

• Geopolitical Uncertainty: Ongoing tensions, such as trade disputes, wars, and policy challenges, such as tariffs among major economies, have increased fears. Many investors to protect their capital have moved to safe-haven assets like gold.

• Expectations of Interest Rate Cuts: Anticipating the US Fed rate cuts, have lowered real yields and made gold increasingly attractive relative to other asset classes, driving investment demand higher.

• Currency Moves: With the recent dollar weakness and inflationary pressures persisting in the US and across the world, gold continues to serve as an effective store of value and portfolio protection against fiat currency depreciation.

• Portfolio Diversification: As bonds and equities bring higher volatility and concentration risk, gold’s role as a portfolio diversifier and stabiliser has become more prominent.

MCX BullDEX Options

The MCX BullDEX Option contract, launched on October 27, 2025 an addition for commodity derivatives in India. This cash-settled, monthly option is built on the MCX iCOMDEX Bullion Index, which comprises both gold and silver futures, giving traders and investors exposure to a diversified basket of precious metals through a single contract. You can trade in these commodity options through prominent brokerage companies such as Rupeezy after necessary KYC compliance.

Gold’s Prominence and Portfolio Appeal

Gold’s mounting prominence is not just a consequence of its price rally. As cross-asset risks intensify, particularly around equity valuations, government debt, and currency volatility, gold’s historic role as a hedge against financial instability and a reliable store of value has returned to the fore. Notably:

• Institutions are raising gold allocations within global market portfolios, replacing the traditional stock-bond mix with alternatives such as gold.

• For retail and HNI investors, the accessibility of products like MCX BullDEX and ETF funds makes participation easier and improves portfolio resilience.

• Fiscal deficit fears and declining confidence in fiat currencies reinforce gold’s appeal versus traditional risk assets.

Can Gold Reach Rs 1.5 Lakh per 10 Grams?

Market experts and analysts project that gold could touch Rs 1.5 lakh per 10 grams by early 2026, underpinned by strong central bank and ETF demand, ongoing rate cut expectations, dollar weakness, and persistent geopolitical instability. Multiple analysts and bullion experts cited in recent media reports expect gold to reach towards Rs 1.5 lakh level in the coming months, provided macro and policy risks persist. Some even forecast that over a 5-year horizon, levels approaching Rs 2 lakh per 10 grams are possible if current trends continue.

Today’s gold correction is a healthy market response to an overheated rally, reflecting both global and domestic factors affecting precious metals. The launch of MCX BullDEX options signals innovation, retail participation, and diversified exposure in bullion trading. Gold remains highly relevant for both macro and portfolio risk management in the future. For investors in India, gold’s strategic role looks set to stay vital through 2025 and beyond.