Gold price nears ₹2 lakh per tola
HYDERABAD: Gold prices continue their sharp upward trajectory, with the international price of gold crossing the $5,000-per-troy-ounce mark for the first time on Monday. Market experts said the rally is unlikely to cool in the near term.
According to the London Bullion Market Association’s annual precious metals forecast survey, gold prices could cross $7,000 per troy ounce in global markets during 2026. At current exchange rates, this would translate to about ₹6.42 lakh per troy ounce and nearly ₹22 lakh per tola in India.
Gold has shown an accelerating price trend over the years. In India, gold first entered five digit territory in 2007, when prices touched ₹10,000 per tola. It took nearly 34 years to double to ₹20,000, nine years to reach ₹40,000, and five years to cross ₹80,000. However, the jump from ₹80,000 to ₹1.6 lakh per tola took barely one to two years.
Gold is commonly measured in tolas in India, while international markets quote prices per troy ounce. One troy ounce equals 31.1035 grams. At Monday’s price of $5,000 per troy ounce, gold is valued at roughly ₹4.6 lakh. If prices rise to $7,000 per ounce, the per-tola price in India could touch ₹22 lakh.
India’s gold reserves
Like several other central banks worldwide, India has sharply increased gold purchases since 2022, following global financial uncertainty triggered by sanctions imposed on Russia. The Reserve Bank of India currently holds over 880 tonnes of gold.
Of this, around 512 tonnes are stored domestically, while about 348 tonnes are held in custody with the Bank of England and the Bank for International Settlements. The remaining gold is held in the form of gold deposits.
Globally, the United States tops the list with over 8,000 tonnes of gold reserves, while India, with 880 tonnes, ranks eighth.
What is driving the rally
Gold prices have risen nearly 18% in just the first 26 days of 2026, underlining the strength of the current rally. The surge began after the Russia-Ukraine war in 2022, when Western sanctions froze Russia’s dollar reserves, prompting fears among several countries about over-reliance on the US dollar.
To reduce dollar exposure, central banks across the world stepped up gold purchases, pushing prices higher. The trend has intensified amid policy uncertainty following decisions taken by US President Donald Trump, analysts said.
Rising prices have also boosted investor interest, with many buyers rushing in amid fears of missing further gains. A weakening dollar has added momentum, as investors typically turn to gold when the greenback loses strength.
