DBT Bureau
Pune, 4 Sep 2026
Global investors remain heavily focused on equities, interest rates and currencies, but one asset class has quietly delivered a historic move while central banks continue accumulating it: gold.
Using the Indian domestic benchmark for 24-carat gold (INR per 10 grams), gold has risen from approximately ₹50,000 per 10 grams in September 2022 to around ₹1.55 lakh per 10 grams in September 2026.
That represents a gain of roughly ₹1.05 lakh per 10 grams, or approximately 210% returns in four years — meaning gold has more than tripled during a period when many investors were focused elsewhere.
The bigger question for investors is not whether gold has already moved higher, but whether the market is recognizing a deeper structural change driven by central-bank accumulation, de-dollarization and rising sovereign risk.
Why Central Banks Are Buying What Investors Are Ignoring
While portfolio managers continue to debate:
• Federal Reserve policy
• Equity valuations
• Bond yields
• Currency cycles
Central banks are focusing on a different question:
How do we protect national reserves in an increasingly fragmented financial system?
The freezing of more than $300 billion of Russian sovereign assets in 2022 changed the perception of reserve security. Physical gold held under domestic control carries no foreign issuer risk and cannot be frozen through traditional financial channels.
The Structural Gold Demand Story
1. Central Banks Are Building Reserves
• Global central-bank gold purchases have remained above 1,000 tonnes annually in recent years.
• China, India, Poland and other emerging economies have increased gold exposure.
• Nations are moving bullion back into domestic vaults to reduce geopolitical dependency.
2. Gold Is Becoming a Monetary Asset Again
Gold is no longer viewed only as an inflation hedge.
It is increasingly being treated as:
• A reserve diversification tool
• A protection against currency weakness
• A geopolitical insurance asset
• A collateral asset without sovereign default risk
3. Investors May Be Looking at Gold Through the Wrong Lens
Traditional asset allocation treats gold as a defensive holding.
Central banks appear to be treating it differently — as a strategic reserve asset for the next monetary cycle.
So question is, Has Gold Already Run Too Far?
A gain of more than 200% since September 2022 may appear to suggest that the easy money has already been made. However, the ongoing behavior of central banks suggests the move may represent more than a normal commodity rally.
The investment community is watching earnings, interest rates and currencies.
Central banks are watching trust, reserves and financial stability.
The key question for investors is:
If the world’s largest financial institutions are increasing physical gold holdings after a historic price rally, are they preparing for a future that markets have not fully priced in yet?
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
