Gold prices in India surged to a historic Rs 1,23,313 per 10 grams on October 13, while international bullion crossed an unprecedented $4,100 per ounce.
The relentless rally, driven by global conflicts, domestic currency weakness, and strong investor demand, has positioned gold once again as a top safe-haven asset, attracting attention from investors, jewellers, and economists alike.
The pace of gold’s ascent is remarkable. Its latest $1,000 increase took just 207 days, a stark contrast to historical trends. Gold took nearly 15 years to climb from $1,000 to $2,000, while the subsequent rise to $3,000 happened within only 14 months by mid-March 2025. Since then, the metal has added another $1,000 in value, marking one of the fastest rallies in recent history.
Gold’s surge is reminiscent of past periods of economic uncertainty. Similar spikes occurred during the late 1970s and the Great Depression of the 1930s, when investors sought stability amid financial turmoil. Today, the rally reflects comparable conditions: geopolitical tensions, monetary policy shifts, and currency volatility have all amplified demand.
Several factors are fueling the current rally. Ongoing conflicts, including Russia’s invasion of Ukraine, rising US-China and China-Taiwan tensions, and the prolonged Israel-Hamas war, have unsettled global markets. In such scenarios, gold emerges as a preferred store of value. Domestically, the weakening Indian rupee has further heightened demand, pushing prices upward.
Economists note that while gold continues to shine, rapid gains may eventually face corrections. Nonetheless, the current momentum reflects both investor confidence in gold as a hedge against uncertainty and the metal’s enduring appeal in times of crisis. For now, gold remains a glittering focal point in global markets, captivating both seasoned investors and newcomers looking for a safe, tangible investment.