Gold's outlook for 2026: Expect returns to moderate after scorching run-up

While existing investors should do partial rebalancing, new investors should enter in a staggered manner

Gold has been among the strongest-performing asset classes in India in 2025, delivering a return of 73.9 per cent year-to-date. After such a strong rally, experts say investors should avoid chasing past returns and instead focus on rebalancing, and maintain a disciplined allocation to the yellow metal in 2026.

 

Central bank buying, rate cuts could support prices 

One of the most important drivers of the rally has been sustained buying by central banks, particularly in emerging markets, as they diversified away from the US dollar and US treasuries. “Since 2022, many of them have been on a gold-buying spree, realising