Gold prices on the Multi Commodity Exchange maintained a strong position above the Rs 1.20 lakh threshold on Tuesday, with December futures quoted at Rs 1,20,596 per 10 grams, reflecting an increase of Rs 347 or 0.29%. This movement comes in the context of Goldman Sachs revising its December 2026 gold price forecast to $4,900 per ounce and the Chinese central bank continuing to expand its gold reserves for the 11th consecutive month. Silver prices also experienced a modest increase, with December futures priced at Rs 1,47,610 per kilogram.
China’s gold holdings reached 74.06 million fine troy ounces at the close of September, an increase from 74.02 million the prior month, reflecting the central bank’s ongoing strategy of expanding bullion purchases for the 11th consecutive month. Data revealed that the monetary value of China’s gold reserves rose to $283.29 billion at the end of last month, up from $253.84 billion previously. Another report indicated that Goldman Sachs on Monday elevated its December 2026 gold price forecast to $4,900 per ounce from $4,300 per ounce, attributing this adjustment to robust Western ETF inflows and anticipated central bank purchases. “The risks to our upgraded gold price forecast appear to be predominantly skewed to the upside, as private sector diversification into the relatively small gold market could potentially enhance ETF holdings beyond our rates-implied estimate,” Reuters reported, citing Goldman Sachs.
On Monday, gold and silver concluded the trading session with gains in both the domestic and international markets. The December futures contract for gold concluded at Rs 1,20,249 per 10 grams, reflecting an increase of 1.81%, while the December futures contract for silver settled at Rs 1,47,519 per kilogram, marking a gain of 1.22%. Gold and silver commenced the new week with notable increases, as both precious metals reached new record highs. Gold prices have reached an unprecedented peak, approaching $4,000 per troy ounce, while silver is steadily advancing towards its historical high of $50 per troy ounce in the global markets. “Robust demand from ETF investors in gold and silver is underpinning prices.
“Gold ETF buying surged 17% year to date and silver demand surged 16% year to date amid robust investor inflows,” stated Manoj Kumar Jain. The prospect of two additional rate cuts of 25 basis points each this year by the U.S. Federal Reserve is bolstering the prices of gold and silver. “However, the rebound in the dollar index and uncertainty stemming from the U.S. shutdown could prompt some profit-taking at elevated levels,” Jain added. Today, the US Dollar Index was hovering near the 98.17 mark, gaining 0.07%.