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Gold prices witnessed another remarkable rally on Thursday, reaching record levels both in India and the global market. The yellow metal soared to ₹1.27 lakh per 10 grams on the Multi Commodity Exchange (MCX), marking a sharp rise of ₹2,290 from the previous day’s close. As of 2:26 PM, gold futures were trading 0.95% higher at ₹1,27,666 per 10 grams, reflecting strong investor sentiment.

Global Momentum Lifts Gold Prices

In international markets, spot gold gained 0.4% to trade at $4,214.52 per ounce, while U.S. gold futures for December delivery edged up 0.1% to settle at $4,218.20 per ounce, their highest level since October 21. Analysts attribute this consistent rally to growing expectations of interest rate cuts by the U.S. Federal Reserve, a weaker dollar, and heightened geopolitical risks driving demand for safe-haven assets.

Why Gold Prices Are Rising Again

Experts point to five key factors fueling this fresh surge in gold prices:

1. Anticipation of U.S. Interest Rate Cuts:
   Investors are increasingly confident that the Federal Reserve will trim rates soon, encouraging more demand for non-yielding assets like gold.

2. Weaker U.S. Dollar:
   The recent decline in the dollar index has made gold cheaper for investors holding other currencies, leading to a surge in global demand.

3. Geopolitical and Economic Uncertainty:
   Ongoing global conflicts and fears of economic slowdown have pushed investors toward gold as a traditional safe-haven investment.

4. Central Bank and Institutional Buying:
   Continuous gold accumulation by central banks and strong inflows into Gold Exchange Traded Funds (ETFs) are supporting price momentum.

5. Rupee Depreciation:
   The weakening Indian rupee has made gold imports costlier, pushing domestic prices higher despite international parity.

Analysts See More Upside

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, “Weakness in the dollar, expectations of rate cuts, and consistent central bank buying are keeping the rally intact. While some short-term consolidation is possible, gold could surpass $4,300 per ounce by year-end if real yields remain subdued.”

Similarly, Rahul Kalantri, Vice President of Commodities at Mehta Equities, stated that gold remains technically strong, with immediate support at $4,100–$4,140 per ounce and resistance around $4,240–$4,265 per ounce.

Institutional Outlook

Emkay Wealth Management projects upside targets of $4,368 to $4,600 per ounce, while setting support levels near $3,890 and $3,510. The firm highlighted that the U.S. dollar has weakened by around 8% over the past year, providing a solid base for commodities. Inflows worth $65 billion into gold ETFs and sustained central bank buying have further strengthened demand.

Emkay’s report also noted that “Dollar weakness, geopolitical risks, and robust institutional purchases continue to make gold an attractive investment option.” The firm recommends investors to hold their existing positions and consider buying more on any short-term dip.

2025: A Golden Year for Investors

Gold prices have surged nearly 60% in 2025, hitting an all-time high of $4,381.21 per ounce on October 20. Experts believe that as long as the global economy remains uncertain and inflationary pressures persist, gold will continue to act as a preferred safe-haven asset.

Disclaimer: The opinions mentioned above are those of market analysts and brokerage firms. Investors are advised to consult certified financial experts before making any investment decisions.