Gold Rates In India Gives 72% Returns In 1-Yr: What Is Worth Of 1 Lakh Investment? 24K, 22K, 18K Gold Prices

Gold rates in India ended the year 2025 on a positive note despite this week's dramatic selling pressure. Last week, gold touched a new all-time high of Rs 1,34,890 per 10 grams in 24 carat before ending the year at above Rs 1.30 lakh levels. 24 carat alone recorded over 72% surge in 2025, giving better returns than many equities, Sensex, Nifty and even traditional schemes like fixed deposits or small saving schemes. Should you buy gold in 2026?

Gold Rates In In India:

On New Year's day, 24 carat gold price stood at Rs 1,35,060 per 10 grams, while 22 carat and 18 carat gold price is at Rs 1,23,800 and Rs 1,01,290 respectively. The start of 2026 has been on a positive note with gold prices halting their previous three-consecutive days selloffs. The month of December is broadly positive for safe haven assets with gains of nearly 3.4% across carats.

However, in the entire 2025, gold emerged as best performing assets. For instance, on January 1, 2025, gold price stood at Rs 78,330 per 10 grams in 24 carat, at Rs 71,800 in 22 carat and at Rs 58,750 in 18 carat. From these levels, 10 grams gold has skyrocketed by a whopping 72.4% across 24 carat, 18 carat and 22 carat.

Gold Returns On Rs 1 Lakh Investment:

If you had invested about Rs 1 lakh in either of the carats, your investment would become a corpus of Rs 1,72,400 as of January 1, 2026. This would be Rs 72,400 gains on your initial investment value.

Gold Rates Performance In 2025:

According to Inderbir Singh Jolly, CEO, PL Wealth, Gold's performance in 2025 reflects a structural shift in how investors and central banks are positioning portfolios. The rally is not driven by short-term speculation but by sustained investment flows into ETFs, alongside continued central bank buying as part of long-term reserve diversification.

The CEO further explained that elevated geopolitical risks, stretched equity valuations, rising sovereign debt and currency volatility have reinforced gold's role as a strategic hedge rather than a tactical trade.

Should You Buy Gold In 2026?

In Singh's view, even as inflation moderates, real yields are expected to remain constrained, which is historically supportive for gold. While some consolidation is natural after a sharp run-up, the medium-term outlook remains positive, with gold continuing to play a critical stabilising role in diversified portfolios heading into 2026.

Also, Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) said, gold is easing off recent highs, with some profit-taking setting in after the strong year-end rally. The correction does appear more corrective than trend-changing, though, with broader sentiment still underpinned by global uncertainty and expectations for easier monetary conditions. With markets considering year-end positioning, gold is likely to undergo a period of consolidation, although the fundamental demand continues to support it.

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Credit: Goodreturns