By Soumya Ranjan Geopolitical tensions, demand for safe haven assets, and expectations of US interest rate cuts are driving gold to all-time highs. The global bullish trend is reflected in the stable price of gold in India.
Wednesday, October 15, saw gold prices continue their upward trend, hitting just under $4,200 an ounce. The metal reached new highs due to a combination of ongoing geopolitical tensions, safe-haven demand, and expectations for US rate cuts.
After briefly reaching a record $4,186.68 an ounce, spot gold increased 0.8% to $4,173.56 per ounce. At $4,192.90 an ounce, US gold futures for December delivery increased 0.7%.
In India, a gram of 24-karat gold was worth ₹12,889, a gram of 22-karat gold was worth ₹11,815; and ten grams of 18-karat (999) gold were worth ₹9,697.
Market observers claim that the US Federal Reserve’s dovish signals are driving the rally. Chair Jerome Powell indicated that interest rate decisions would be made “meeting-by-meeting” and emphasized the muted state of the labor market.
Investors now anticipate that the Fed will cut interest rates by 25 basis points in October and December.
In a Reuters report, Matt Simpson, senior analyst at StoneX, stated that “the US government shutdown and dovish remarks from Powell have provided the latest reasons for gold prices to accelerate higher.”
Uncertainties in geopolitics are also at play. Both China and the United States recently imposed tit-for-tat port fees, and US President Donald Trump recently announced plans for possible trade restrictions with China. The allure of gold as a safe-haven asset has been strengthened by these tensions.
Over the past three days, gold has increased 4.7% in India.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, the price range for gold is between ₹1.24 lakh and ₹1.27 lakh per 10 grams, with a positive bias.
Experts also highlight gold’s long-term worth to investors.
“Gold offers lower volatility, deep market liquidity, and a consistent track record as a hedge during inflation or macroeconomic uncertainty,” stated Anooshka Soham Bathwal, founder and CEO of Dhanvesttor. It is a type of financial security because of its capacity to maintain purchasing power across generations, especially for women constructing independent portfolios.
Due to central bank purchases, ETF inflows, de-dollarization trends, and momentum trading, bullion has risen 59% so far this year, making it a daily highlight for investors seeking stability in the face of uncertainty around the world.
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