Gold Prices Surge to Record High in Early 2026
The Reserve Bank of India marginally increased its gold reserves, while imports climbed to a three-month high.
SEATTLE (Scrap Monster): Gold prices surged to fresh peaks in early 2026 before entering a volatile correction phase and eventually stabilising near the US$5,000 per ounce level.
Despite sharp swings, bullion demonstrated resilience, closing January with a strong monthly gain and extending its multi-month rally. The advance was supported by robust inflows into gold exchange-traded funds (ETFs), geopolitical uncertainties and a softer US dollar. Domestic prices tracked global movements, touching record highs in rupee terms before easing as currency dynamics shifted.
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Elevated prices encouraged investment-led buying, while jewellery demand remained steady but measured. Consumers increasingly opted for staggered purchases, with exchange of old gold forming a significant share of transactions. Although volumes moderated year-on-year, overall value growth remained firm due to higher price realisations.
Indian gold ETFs recorded unprecedented inflows in January, pushing assets under management and cumulative holdings to historic highs. Investor participation expanded sharply, signalling stronger portfolio diversification trends. Digital gold purchases through UPI platforms also jumped to record levels, reflecting rising retail engagement.
The Reserve Bank of India marginally increased its gold reserves, while imports climbed to a three-month high, largely driven by investment demand and pre-budget stocking activity.