Gold Dec futures hit new record high of Rs 1.22 lakh/10 gm; analysts decode near-term trend for precious metal

The domestic prices of gold also surged, with the price of 10 grams of 24 carat gold rising by Rs 1,150 in one session to Rs 1,23,170, according to data on GoodReturns. The price of 10 grams of 22 carat gold meanwhile surged Rs 1,050 to Rs 1,12,900.

What analysts say?

Gold prices have surged over 51 percent this year, mainly driven by a weaker US dollar, expectations of lower interest rates, strong central bank demand, and geopolitical uncertainty, said Ross Maxwell, Global Strategy Lead at VT Markets.

What lies ahead for gold?

He however noted that sustaining the current momentum will be tricky, especially as there could be some profit booking on some key psychological levels. "However, the overall drivers of Gold remain and price could continue higher if the FED commentary turns dovish or geopolitical risks intensify. However, a stronger USD or higher real yields could trigger short-term pullbacks of 5–10%," he added.

Gold’s remarkable rally this year has reignited investor enthusiasm, and the momentum is expected to continue through the festive season and into the final months of the year, said Jashan Arora, Director at Master Trust Group.

"The primary driver behind this sustained strength is the aggressive gold accumulation by central banks worldwide, which are diversifying away from the US dollar and fortifying their financial reserves. In parallel, investor demand remains robust, supported by expectations of potential interest rate cuts and persistent geopolitical uncertainty. These factors together create a strong bullish outlook for gold in the near term," he added.

"For investors looking to participate in this uptrend, instruments such as gold exchange-traded funds (ETFs), mutual funds, low-cost, and hassle-free exposure to the metal—without the burden of physical storage," he explained.

Should you invest in gold at these levels?

Maxwell said that investors can still invest in gold at these elevated levels, taking some specific options. "Digital or gold investment accounts offer convenient, low-entry access. Likewise gold ETFs such as SPDR GLD, provides good strong liquidity and low costs. More experienced investors can explore futures, options, or CFDs for leveraged exposure. They could also use gold mining stocks for potentially higher but riskier returns," he explained.

"Investors should remain sensible and cautious in the approach and enter gradually, using Dollar cost averaging strategies, diversifying across instruments, and monitoring key triggers like US inflation and keep a keen eye on FED commentary and policy. Overall, gold remains an attractive hedge and diversification asset, but disciplined position sizing and awareness of volatility are essential to capture gains while managing risks," he said.

Fortunately, gold investment today extends well beyond jewellery and bullion, said Jashan Arora. "A range of modern investment avenues—such as gold mutual funds, exchange-traded funds (ETFs), and e-gold platforms—allow investors to participate in the metal’s performance with greater convenience and flexibility. These options require lower capital outlays, offer higher liquidity and transparency, and eliminate making charges, making them a more practical and efficient alternative to holding physical gold," he added.

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