Gold Price Prediction: Will Prices Fall as Governments Cut Purchases?

• Central bank gold purchases saw a significant 70% decline in 2025 compared to 2024, despite gold prices soaring.
• India's RBI reduced its gold purchases by nearly 94% in 2025, from 72.6 tonnes in 2024 to just 4.02 tonnes.
• Despite central banks expressing a desire to increase reserves, high gold prices and domestic economic pressures led to reduced buying by many nations.
• Gold prices surged over 60% in 1.5 years, reaching approximately $4381 per ounce in 2025 due to geopolitical tensions, dollar weakness, and inflation fears.
• Major banks like Goldman Sachs and JP Morgan predict gold prices could reach $5000-$5400 per ounce by late 2026, potentially pushing Indian prices to ₹2 lakh per 10 grams.

Why It Matters: Despite reduced central bank buying, gold prices are predicted to rise further due to global uncertainties.