What is pushing gold prices higher?:Analysis cites broader economic shifts behind metal rates soaring to record highs

Gold has become costlier by ₹28,000 per 10 gm so far this year. On December 31, 2025, 10 gm gold was at ₹1.33 lakh, which has now reached ₹1.61 lakh. On January 29, gold made an all-time high of ₹1.76 lakh per 10 gm. What’s behind the unprecedented rise in metal prices? According to a press release by NRDPL, under an arrangement with PTI, a few years back, gold looked overvalued at ₹70,000 per 10 gm. And in 2026, it reached an all-time high of ₹1.76 lakh per unit. According to the press release, several interconnected factors have aligned to push prices to these historic highs. The movement is driven largely by institutional behaviour rather than retail consumption. Following three factors behind rise in metal rates: Aggressive Central Bank Purchases: Central banks across the world are changing how they manage their reserves. Seeking to reduce their reliance on the US dollar, institutions across emerging economies have accumulated record tonnage of the yellow metal. This persistent demand provides a solid floor for the market.

Currency Depreciation and Inflationary Pressures: The exchange rate between the Indian Rupee and the US Dollar directly dictates local retail rates. Since India imports the vast majority of its domestic supply, a weaker rupee directly increases the gold price in India. Furthermore, inflation numbers make fiat currency less attractive for wealth preservation.

Geopolitical Safe-Haven Demand: Supply chains are still all over the place, and trade ties keep shifting, so there is constant uncertainty. When things get like this, big investors start putting money into gold since it tends to hold value better.