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Gold in India continues to hover near record levels, supported by global safe-haven demand and expectations of further US rate cuts. Experts suggest investors maintain a cautious but strategic approach.
By Anshul October 6, 2025, 10:30:46 AM IST (Published)
Gold prices in India opened the week on a strong note, with 24-karat gold trading at ₹12,077 per gram, 22-karat at ₹11,070 per gram, and 18-karat (999 gold) at ₹9,058 per gram for 10 grams, according to GoodsReturns.
Globally, gold surged past the $3,900-per-ounce mark for the first time on Monday (October 6), driven by safe-haven buying amid a weaker Japanese yen and a partial U.S. government shutdown.
Spot gold rose 0.9% to $3,922.28 per ounce by early GMT trading, after briefly touching an all-time high of $3,924.39.
US gold futures for December delivery were up 1% at $3,947.30 an ounce.
Market analysts point to multiple factors supporting the rally.
Tim Waterer, Chief Market Analyst at KCM Trade, said, “Yen weakness following Japan’s ruling party elections has left investors seeking alternative safe havens, with gold benefiting from that shift. The ongoing US government shutdown adds further uncertainty over the economy and potential GDP impact.”
Expectations of additional Federal Reserve rate cuts have also bolstered demand.
According to CME FedWatch, investors are pricing in a 25-basis-point cut in both October and December, with probabilities of 95% and 83%, respectively. Non-yielding assets like gold tend to thrive in such low-rate and uncertain environments.
The rally in gold has been notable this year, with prices climbing around 49% in 2025 after a 27% rise in 2024.
Central bank purchases, increased investment in gold-backed ETFs, a softer dollar, and heightened geopolitical tensions have all contributed to strong demand.
Tata Mutual Fund suggests that gold may consolidate in the $3,500–$4,000-per-ounce range in the near term.
The fund house added, “Investors may remain invested and look for accumulation on any price decline triggered by short-term cyclical factors. Gold remains a strategic long-term hedge against inflation, geopolitical uncertainty, and currency depreciation. A balanced allocation with silver could be considered, as both metals appear attractive.”
Domestically, support levels for gold in rupee are pegged at ₹1.17 lakh–₹1.18 lakh per 10 grams, with resistance around ₹1.18 lakh–₹1.19 lakh per 10 grams, according to Rahul Kalantri, VP – Commodities at Mehta Equities.
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, noted, “Gold remains near all-time highs due to persistent global uncertainties and the US government shutdown delaying key economic data. While prices have rallied nearly 50% this year, cautious accumulation could be prudent, especially if Federal Reserve policy surprises the market.”
Analysts advise that any short-term dips could provide buying opportunities, as the broader market continues to grapple with multiple macroeconomic and geopolitical risks.
