Is Gold still undervalued?:Experts set price target of upto ₹2 lakh per 10 gm on gold ₹3.5 lakh on silver

Gold has given returns of over 59% Year-To-Date (YTD). The precious metal has seen an unprecedented rise in prices both in the years 2025 and 2024. In such a case, people are perplexed whether they could still stack up bullion or wait for a correction. To clear all your doubts, we spoke to Aditya Modak, the CFO COO of India’s top jewellery retailing company, P N Gadgil Sons Ltd. Let’s see what’s his view on the future of gold and silver prices: Gold’s fair value at ₹1.39 lakh per 10 gm: PNGS According to Modak, the yellow metal is still cheap in valuations and its fair value stands at $4,400 per ounce in the international market. An ounce is a unit of measuring weight of an item. One ounce is equivalent to 28.5 grams (gm). The precious metal is measured in terms of grams in India but in the international market, its price is expressed in ounce. On 11 October 2025, the rates in the global market were quoted at $3,992.80 per ounce, by the news agency PTI. If the yellow metal rises to the fair value as assigned by the commodity expert, then, this means there is still 10% upside left in the prices of the oldest commodity known to the mankind. Commodity expert’s conviction is underpinned by following factors Modak says that if the precious metal is to see its fair value come into practice, then, following two factors must unfold: Central banks have continued to pile up bullion since 2022. The People’s Bank of China (PBC) has been the largest buyer. But according to Modak, gold still accounts for 5% of China’s total foreign exchange reserves of $3.2 trillion. So, there is still room for growth. He goes on to say that if PBC extends the gold’s proportion to 15%-20% of total forex reserves, then, this could drive the commodity’s prices globally to $6,000–9,000 per ounce. This translates to 125% upside from current levels which means gold prices could still double from here. Modak says that geopolitical uncertainties have driven bullion prices in the past and same could be the reason behind further surge. Factors like unpredictable policies of the US President Donald Trump could underpin elevation in gold prices. The Trump administration’s unpredictable tariff policies keep making global markets more unstable, which makes gold more appealing as a safe haven. -Aditya Modak, the CFO COO, P N Gadgil Sons Ltd The commodity expert adds, “Conservative estimates say that gold will stay above $4,000 per ounce for most of 2025. But it could go up to $4,500-5,000 during times of high uncertainty.” Jefferies sees gold prices at over ₹2 lakh per 10 gm on long term While, the US-based multinational independent investment bank and financial services company, Jefferies, has said the long term target of $6,600 per ounce on precious metal, according to ANI. This translates to more than ₹2 lakh per 10 gm. The investment bank has advised a buy on dips strategy regarding gold. It has advised investors to add the shining metal to their portfolios on price corrections. PNGS sees silver at ₹3.5 lakh per kg in 3 yrs While, on silver, Modak says that the white metal also has a lot of value and could reach ₹2.25–3.5 lakh per kg in three years.