By Admin 
‘I request the countrymen not to buy gold for the next one year…’
After this appeal of Prime Minister Narendra Modi, there has been a tremendous fall in the prices of gold. On June 25, 2026, 24 carat gold fell by Rs 2,156 to Rs 1.40 lakh per 10 grams. At the beginning of this month i.e. on June 1, gold was Rs 1.56 lakh per 10 grams. That means, in just 25 days, gold has become cheaper by Rs 16,000 per 10 grams. The question is, should we still not buy gold after listening to PM Modi or is this an opportunity to buy?
What were the gold prices in IBJA on 25 June 2026?
According to India Bullion and Jewelers Association (IBJA), gold prices on June 25, 2026:
| carat | Price(Rs/10gm) |
| 24 carat | 1,40,022 |
| 22 carat | 1,28,260 |
| 18 carat | 1,05,017 |
| 14 carat | 81,913 |
This year’s fluctuations in gold prices:
| date | 24 carat gold (Rs/10 grams) |
| 31 December 2025 | 1,33,000 |
| 29 January 2026 (top) | 1,76,121 |
| 25 June 2026 | 1,40,022 |
That means gold has become cheaper by Rs 36,099 from the record level of January 29.
What was the purpose of PM Modi’s appeal?
Prime Minister Narendra Modi had appealed not to buy gold for a year. Its objective was to save foreign exchange reserves and reduce dependence on expensive imports. Actually, gold is India’s second largest import after crude oil. In the financial year 2026, India spent about 72 billion dollars (about Rs 6 lakh crore) on gold imports. When tensions increased in West Asia and crude oil prices increased from $70 to $120 per barrel, India needed more dollars to import oil. In such a situation, banning the import of gold was a way to save dollars.
The government also increased the import duty on gold from 6% to 15%. That means 10% basic custom duty and 5% Agriculture Infrastructure and Development Cess (AIDC) i.e. overall 15% tax. Industry experts have supported this appeal of PM Modi. He says that this will help in saving foreign exchange reserves.
Why are gold prices falling?
Experts give 5 big reasons for falling gold prices:
- US-Iran Agreement: A peace agreement has been signed between America and Iran. This has reduced the risk of war in West Asia. As a result, investors are withdrawing money from ‘safe investments’ i.e. gold and silver.
- US Federal Reserve’s stance: The Federal Reserve has indicated that it may increase interest rates. When interest rates rise, non-interest bearing commodities (like gold) become cheaper.
- Strong Dollar: The US dollar index has strengthened after the signals from the Federal Reserve. When the dollar strengthens, the prices of gold and silver fall in the international market.
- Profit Booking: Some time ago the prices of gold and silver had reached record levels. In January 2026, gold had reached a record level of Rs 1.76 lakh and silver had reached Rs 3.86 lakh. After this the investors started selling to earn profit.
- PM Modi’s appeal: The Prime Minister’s request not to buy gold has also had an impact. In Gujarat the demand for gold has reached its lowest level.
So buy gold or not, what do experts say?
Experts who are in favor of ‘buying’:
- According to Tata Mutual Fund’s June 2026 outlook, ‘Gold and silver investors may face short-term volatility, but the case for holding gold in the long term remains strong.’ Tata Mutual Fund recommends investing step by step instead of lump sum investment.
- “The decline should be seen as a buying opportunity,” says Abhilash Koikkara, head of forex and commodities at Nuvama Professional Clients Group.
- According to the Economic Times report, ‘Existing investors should avoid panic selling, because the long-term outlook remains positive. New investors can gradually invest in ETFs through SIP, while 10-15% of the portfolio should be kept in precious metals.
Experts who advise caution:
Neither gold nor silver should be considered as the return driver (main means of earning profit) of the portfolio.
According to HDFC Mutual Fund expert Firoz Aziz, ‘The habit of buying gold after the boom is a pattern, where investors buy at the peak price. This means that one should buy when the prices have fallen significantly and not when the prices are sky high. 5% fluctuation is possible in gold prices.
What is the easy advice for the common man?
If you are thinking of buying gold:
- no hurries: Experts say that prices may fall further. If you don’t need it immediately, wait a while.
- Buy like SIP: Buy little by little instead of making big purchases at once. This reduces the average cost.
- Buy only BIS hallmarked gold: Always buy gold with Bureau of Indian Standards (BIS) hallmark. Hallmarks contain an alphanumeric code (such as AZ4524), which tells how many carats the gold is.
- Cross-check the price: Before buying, check the exact price of that day from IBJA website or other sources.
Keep only 10-15% of the portfolio: According to experts, do not keep more than 10-15% of the total investment in gold.
If you want to accept PM Modi’s appeal:
PM Modi’s appeal is in the interest of the country. This is necessary to save foreign exchange reserves. If you are not doing important shopping (like wedding, festival), then waiting for some time can be beneficial for the country.