Colin Shah of Kama Jewellery says gold may resume upward journey

Gold rally may resume after recent correction; prices could rise further over next year: MD, Kama Jewellery

By Nikhil Dedha, Mumbai, November 5

Speaking to ANI in an exclusive interview, Shah said the recent correction in international gold prices was largely driven by global developments rather than factors specific to the Indian market. He identified the US dollar and Federal Reserve interest rates as two major factors influencing gold prices.

"Especially its inversely proportional relationship to the dollar and the interest rates of the Fed. So those are maybe the two main things which are the drivers for the gold pricing globally," Shah said.

He said gold prices had fallen around 25-27 per cent from their peak before stabilising. However, he expects the market to regain momentum after a brief period of consolidation.

Gold prices in India had touched an all-time high of Rs 1,75,340 per 10 grams for 24-karat gold on January 29, 2026.

"In rupee terms, the outlook in the near term is that we will see some kind of forming up in the next couple of weeks. And then I think over the next one year, it should start its upward journey again," he said.

Shah attributed his positive outlook to expectations of continued global uncertainty over the next two years, which could support gold prices.

At the time of reporting, 24-karat gold was trading at around Rs 1,44,903 per 10 grams.

Explaining why Indian consumers did not see a similar decline in domestic gold prices despite the correction in international markets, Shah said the 15 per cent import duty and depreciation of the rupee by nearly 3-5 per cent cushioned the impact.

He said domestic gold prices remained largely within the range of Rs 1.3 lakh to Rs 1.5 lakh during the period.

Despite elevated prices, Shah said gold jewellery demand had remained strong during the ongoing festive season, from Raksha Bandhan and Navratri to the run-up to Dhanteras.

"From Raksha Bandhan to Navratri to now the run-up to Dhanteras, it's been very strong," he said.

He added that the upcoming wedding season was also expected to support jewellery demand, with a large number of weddings scheduled every year during this period.

Shah said Indian consumers generally viewed gold as a long-term investment rather than an asset for short-term trading. Purchases are often linked to weddings, emotional occasions and investment purposes, while consumers frequently prefer exchanging old jewellery instead of selling it for cash.

He said price corrections offered an opportunity for consumers to purchase gold and average their buying over time, particularly when viewed from a five-to-ten-year investment horizon.

"At every drop, it's a great price to buy," Shah said.

— ANI