Surprisingly, Bank of America thinks the answer is yes — and not just a little higher, but to levels that could completely reshape the market.
Gold has cooled off slightly after hitting lifetime highs, yet it’s still sitting near ₹1.25 lakh per 10 grams in India. And just when people thought the rally might be losing steam, Bank of America (BoA) dropped a bold forecast that’s turning heads across global markets.
Why Bank of America Sees Gold Surging in 2026
BoA’s latest research projects an average gold price of $4,538 per ounce in 2026.
And here’s the part that really grabs attention —
If global economic conditions remain supportive, the bank believes gold could even hit $5,000 per ounce.
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Think about that for a moment.
For Indian buyers, that level would translate to roughly ₹1.57 lakh per 10 grams, a massive jump from today’s levels. Considering gold’s strong emotional and financial hold in India, such a rise would impact everyone — from small savers to long-term investors.
Right now, global spot gold is around $4,175 per ounce, while the India Bullion & Jewellers Association (IBJA) lists 24-carat gold at ₹1,25,342 per 10g.
So, what makes BoA so confident about a fresh gold rally?
The Global Factors Driving the 2026 Gold Forecast
Here’s the thing — when you zoom out and look at the global economy, several long-term forces are quietly lining up in gold’s favor. Bank of America highlights these key triggers:
1. Rising Government Debt Worldwide
Countries everywhere are borrowing aggressively. Higher debt often weakens currency confidence, and when that happens, investors naturally turn to gold.
2. Stubborn Inflation That Won’t Go Away
Even if inflation cools a bit, it’s still sticking around. People buy gold to protect their savings when everyday prices keep rising.
3. Lower Interest Rates Expected
When interest rates fall, savings accounts lose appeal. Gold becomes the safer choice — a kind of financial seatbelt.
4. America’s Unconventional Economic Policies
BoA hints that some of the U.S. policy decisions are pushing investors toward defensive assets. Gold is usually first in line.
5. Limited Supply of Mineral Resources
Gold supply isn’t unlimited. If production slows while demand grows, prices have only one direction to go.
6. China’s Unpredictable Demand Pattern
China is one of the world’s biggest gold buyers. When its demand spikes unexpectedly, global prices react instantly.
Put all these pieces together and the picture becomes clear:
Gold isn’t just reacting to short-term market noise — it’s responding to deep, long-term economic shifts.
What This Means for Indian Investors
If you buy gold for weddings, savings, or long-term wealth, this outlook matters.
A price level of ₹1.57 lakh per 10 grams in 2026 may sound far off, but we’ve seen how quickly gold can climb when global uncertainty rises.
Does this mean you should rush to buy gold right now? Not necessarily.
But it does mean one thing:
Ignoring gold completely might be riskier than owning a small portion of it.
I’ve seen families protect their wealth during tough years simply because they held some physical gold. And I’ve also met investors who regretted waiting for “better prices” that never came back.
Gold isn’t about timing the perfect dip — it’s about building long-term stability.
Frequently Asked Questions
1. Why is Bank of America predicting such a high gold price for 2026?
BoA expects rising global debt, sticky inflation, lower interest rates, and supply constraints to push gold higher. These long-term factors create strong upward pressure on gold prices.
2. Will gold really reach ₹1.57 lakh per 10 grams in India?
If global prices hit $5,000 per ounce, then yes — Indian gold could touch around ₹1.57 lakh per 10 grams, depending on currency rates and local taxes.
3. Should I invest in gold now?
Gold isn’t meant for quick profits. If you’re building long-term financial security, holding a small percentage of gold can add stability to your portfolio.
