Speaking at the India Investment Summit and in an interaction with ET Now, Mathur reiterated that a “buy on dips” strategy remains the most effective way for retail investors to build gold exposure.
Gold investment strategy 2026: Why ‘buy on dips’ still works
Mathur said the fundamental drivers of gold remain intact despite recent price volatility.
“Global uncertainties continue, risk assets may not perform consistently, and gold remains a hedge against inflation and currency risks,” he noted.
He highlighted three major structural supports for gold:
- Strong central bank demand
- Continued financialisation of gold via ETFs
- Easy digital access to gold investment products, especially gold ETFs
- As long as global risk appetite does not dramatically improve, Mathur believes gold will retain its bullish bias.
Gold ETF inflows surge in India
Recent data shows strong domestic demand.
According to industry data, Indian investors accumulated roughly $2.49 billion worth of gold in January 2026 alone. For calendar year 2025, gold ETFs in India saw inflows of approximately $4.67 billion.
January demand nearly doubled compared to December 2025, marking one of the strongest monthly surges in recent years.This surge reflects growing retail participation and increasing preference for financial gold over physical holdings.
Gold price outlook: Key levels to watch
Mathur expects gold to trade within a relatively defined range over the next six months, barring major global shocks.
Downside support: $4,600–$4,700 per troy ounce
Upside target: $5,100–$5,200 per troy ounce
He does not foresee gold touching $5,500 this year unless there is a significant shift in US monetary policy.
The stance of the US Federal Reserve remains a crucial variable. A dovish pivot could weaken the dollar and lift gold further, as dollar-denominated commodities typically benefit from currency depreciation.
What could push gold higher?
Mathur outlined key indicators investors should track:
- Central bank buying trends: Ongoing de-dollarisation could sustain demand.
- Global ETF flows: Investment demand remains a powerful driver.
- Geopolitical risks: Escalation in global conflicts could trigger safe-haven buying.
- US interest rate policy: A dovish Federal Reserve would support gold prices.
- Inflation concerns: Persistent inflation enhances gold’s hedge appeal.
He added that global gold demand exceeded 5,000 tonnes in 2025, and similar or higher levels could provide structural support.
Silver outlook: Not as strong as gold
While silver has seen a strong rally, Mathur is more cautious on the metal.
He expects silver to consolidate due to relatively weaker underlying fundamentals compared to gold. Unlike gold, silver has a heavier industrial demand component, making it more sensitive to global economic cycles.
“Gold remains in bullish territory, but silver may consolidate,” he said.
Should investors allocate now?
Mathur maintains that staggered investments remain prudent.
Rather than timing peaks, investors should accumulate gold during price corrections. Gold ETFs continue to be a preferred vehicle due to liquidity, transparency and ease of access.
With geopolitical tensions, central bank diversification and global monetary shifts still in play, gold appears positioned to retain its appeal as both a hedge and a portfolio diversifier in 2026.
Disclaimer: The views expressed are those of the expert and do not constitute investment advice. Investors should consult financial advisors before making investment decisions.