Mumbai | September 30, 2025, 16:00 IST — Filed via global commodities market data
Gold prices surged to fresh record highs on Tuesday, supported by robust safe-haven demand as global investors sought refuge amid persistent macroeconomic uncertainty. Concerns over geopolitical tensions, volatile crude oil markets, and uneven global growth have kept bullion well bid through the month, with spot gold extending gains into quarter-end.
Spot Prices Touch New Peak
Spot gold climbed above $2,540 per ounce, while domestic prices on the MCX hit ₹72,450 per 10 grams, marking a new lifetime high. Traders attributed the rally to sustained inflows into gold-backed exchange-traded funds (ETFs) and steady demand from central banks.
Silver prices also firmed, with MCX silver trading near ₹91,000 per kg, reflecting broader precious metals strength.
Why Gold is Rising
Analysts cited multiple factors behind the relentless rally:
- Safe-Haven Demand: Ongoing global geopolitical risks and volatile equity markets have driven investors toward gold as a stable asset.
- Soft US Dollar: The dollar index has eased marginally, supporting commodities priced in dollars.
- Central Bank Buying: Emerging-market central banks have continued to add to gold reserves, adding fundamental support.
- FII Flows: Foreign portfolio investors have raised exposure to commodities amid cautious equity positioning.
“Gold’s strength is a reflection of both macro hedging and genuine physical demand. The market is pricing in prolonged uncertainty,” said a senior commodities analyst at a Mumbai-based brokerage.
Domestic Drivers
In India, festive-season demand is adding to momentum. With the onset of Navratri and Diwali in the coming weeks, jewellers expect robust sales despite elevated prices. Rural demand, typically sensitive to price hikes, has so far held up due to stronger farm incomes this year.
Traders added that jewellery demand coupled with investment buying through digital platforms has helped push MCX volumes higher.
Market Reactions
Equity markets showed muted response, though jewellery and gold-loan NBFC stocks saw some traction on expectations of higher collateral valuations. Meanwhile, investors rotated part of their portfolios into gold ETFs, with assets under management rising over 5% this quarter.
Global commodity funds also raised allocations, citing gold’s resilience versus other assets.
Outlook
- Near-Term: Analysts expect gold to consolidate in the $2,500–2,550/oz range as investors weigh US data and monetary policy cues.
- Domestic: MCX gold could stay in the ₹71,500–73,000 per 10g range ahead of festive demand.
- Risks: Any sudden dollar rebound or easing of geopolitical concerns could trigger corrections, but the underlying tone remains firm.
“Gold is in uncharted territory, but the bid is persistent. Investors should brace for volatility while acknowledging the strong bullish undertone,” said another dealer.
