Will Gold Prices Touch Rs 3,500 Per Ounce In The Long Run?

Gold prices have been climbing steadily, recently breaching the $3,000 mark per ounce (oz). With uncertainty in the air—from inflation worries to geopolitical tensions—many investors are wondering if the prices of the yellow metal could reach $3,500/oz in the future.

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Key Driving factors

Several factors are fueling gold’s upward trend. Central banks in countries like China and India are increasing their gold reserves to reduce reliance on the US dollars. At the same time, gold’s appeal as a safe-haven asset rises during global unrest, whether it’s war, economic instability, or political tension.

Furthermore, with growing concerns about inflation and rising debt levels around the world, gold is increasingly seen as a stable store of value and a hedge against currency depreciation.

What could further escalate prices?

Experts point out that a major financial crisis or a global recession could trigger a surge in gold demand as investors flee to safety. If inflation remains exceedingly high or if confidence in central banks weakens, gold could benefit further. Another possibility is a continued weakening of the US dollar or a broader global shift away from dollar reserves, both of which would likely increase demand for gold.

What are the challenges?

One major obstacle is rising interest rates, which tend to make gold less attractive because it doesn’t offer any yield. If inflation stays under control and financial markets remain calm, investors may prefer to put their money into stocks or bonds instead.

Additionally, if central bank buying slows down or if interest in gold exchange-traded funds (ETFs) weakens, it could put downward pressure on prices.

What is the road ahead?

Some analysts believe gold could climb past $3,000 in the next few years—and potentially even reach $3,500 if global shocks continue. Others take a more cautious view, expecting prices to settle in the $2,200 to $2,500 range, especially if economic conditions remain stable.

Some analysts are also of the view that gold could indeed hit $3,500 an ounce over the long run, but it depends heavily on the global economic outlook. While it may not happen immediately, gold remains a reliable long-term hedge—especially during periods of uncertainty.