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Gold prices in India touched a fresh record on Wednesday, September 10, 2025, as strong domestic demand during the wedding and festive season, along with global market cues, pushed rates to unprecedented levels. In Delhi markets, the price of 24-carat gold surged to ₹1.10 lakh per 10 grams, marking the highest ever recorded.

Analysts attribute this rally to multiple factors—robust festive demand in India, expectations of interest rate cuts in the United States, and geopolitical tensions that have boosted safe-haven buying.

Global Gold Market Also at Record Levels

In the international market, spot gold rose 0.3% to $3,635.32 per ounce. A day earlier, on September 9, gold prices had climbed to an all-time high of $3,673.95 per ounce.

Experts believe the rally has been driven by:

• Anticipation of a 25 basis-point rate cut in the upcoming US Federal Reserve meeting.

• Signs of weakness in the US economy, reflected in key economic indicators.

• Escalating geopolitical tensions in the Middle East and Central Asia.

• Consistent gold purchases by central banks worldwide and rising inflows into exchange-traded funds (ETFs).

Domestic Demand Remains Strong Despite High Prices

According to Akshay Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), domestic demand remains firm as the wedding and festive season has just begun. He acknowledged that high prices could discourage some families from buying jewelry, but investment demand and steady ETF inflows are expected to continue supporting the market.

Similarly, Darshan Desai, CEO of Aspect Bullion and Refinery, noted that some profit-booking is likely at these levels. However, he added that any correction in prices would immediately attract fresh buyers. He emphasized that ongoing geopolitical tensions and the likelihood of deeper-than-expected interest rate cuts by the Federal Reserve will provide a solid base for gold.

Expert Insights on the Road Ahead

Market experts believe volatility will remain in the short term. Rahul Kalantri, Vice President (Commodities) at Mehta Equities, explained that gold in India is currently finding support between ₹1.07 lakh and ₹1.08 lakh per 10 grams, while resistance is expected between ₹1.08 lakh and ₹1.09 lakh.

He highlighted that gold prices in India have already risen by 38% in 2025, after posting a 27% gain in 2024. The next trend will largely depend on consumer behavior during the upcoming festive season, as buyers weigh record-high rates against traditional demand.

Key Factors Supporting Gold Prices

1. US Federal Reserve policy – Markets expect a rate cut in September, which reduces the opportunity cost of holding gold.

2. Geopolitical uncertainty – Conflicts in Asia and the Middle East continue to drive safe-haven buying.

3. Central bank purchases – Large-scale buying by central banks is bolstering investor confidence.

4. Seasonal demand in India – Weddings and festivals such as Diwali traditionally spark a surge in gold buying.

Will Consumers Hold Back or Buy More?

The big question now is whether Indian consumers will continue to buy at record-high levels or delay purchases in hopes of a correction. While some families may postpone jewelry buying, experts believe festive demand, combined with investment-led purchases, will provide enough support to keep prices elevated.

Outlook

As markets await fresh cues from US inflation data and the Federal Reserve’s September policy meeting, analysts suggest gold prices are likely to remain firm in the near term. In India, consumer response during the festive season will be the key driver of the next price trend.

For now, gold continues to glitter—offering both challenges and opportunities for buyers, traders, and investors alike.