Gold Shines at All-Time Highs as Global Uncertainty and Rate Cut Hopes Fuel Record Rally”
Gold has reached historic highs in both international and Indian markets, driven by a perfect storm of global economic uncertainty, weakening currencies, central bank accumulation, and growing investor appetite for safe-haven assets. Internationally, spot gold is hovering around $3,583 per ounce, just below its all-time high, while in India, prices have surged past ₹1,08,000 per 10 grams, with cities like Ahmedabad witnessing retail rates touching ₹1,09,500. The rally is being powered by increasing speculation that the U.S. Federal Reserve will initiate interest rate cuts by the end of the year. This has weakened the U.S. dollar and made non-yielding assets like gold more attractive. At the same time, central banks—especially in emerging markets—continue to accumulate gold as a long-term hedge against currency risks and global conflict, although the pace of buying has slightly moderated.
Back home, domestic investors are witnessing record prices in futures and spot markets. The Multi Commodity Exchange (MCX) saw October contracts trading around ₹1,07,240, after hitting highs of ₹1,07,807 last week. Technical indicators such as RSI and MACD continue to show bullish momentum, prompting analysts to advise a “buy on dips” strategy. The broader outlook remains positive, with projections suggesting gold could breach ₹1,09,000 in the near term, and potentially ₹1,20,000 per 10g by the end of 2025. Long-term forecasts from global financial institutions hint at the possibility of gold reaching $4,000 per ounce by 2026.
The ongoing geopolitical tensions, trade uncertainties, and fears of a global slowdown are reinforcing gold’s role as a reliable hedge. Additionally, the shrinking confidence in fiat currencies, particularly amid rising public debt levels and inflation pressures, is pushing even more institutional and retail money into the yellow metal. As the festive season in India approaches and global macroeconomic conditions remain volatile, gold may not just retain its glitter—it might shine brighter than ever before