Gold prices have reached new all-time highs in India and around the world, as investors react to changing economic conditions and market signals.
On Friday, 24-karat gold was priced at about Rs 1.11 lakh for 10 grams, with the yellow metal climbing close to its all-time high worldwide, according to reports.
Globally, spot gold rose 0.6% to $3,654.37 per ounce, closing in on the record of $3,673.95 reached earlier in the week. US gold futures for December delivery also saw gains, rising to $3,692.80 per ounce.
So, what’s driving this sharp rise? Here are three big factors keeping gold shining bright.
US RATE CUTS AND MARKET EXPECTATIONS
Data from the US labour market indicates growing economic weakness, with higher jobless claims and slower employment growth. These signs have overshadowed inflation concerns and strengthened bets on several Federal Reserve interest rate cuts through 2025.
SAFE-HAVEN DEMAND AND GEOPOLITICAL TENSIONS
With geopolitical tensions still running high, investors are moving towards safer assets. Gold has always been seen as a safe-haven during uncertain times, and the current global backdrop is pushing more money into the metal.
STRONG BUYING AND SUPPORTIVE DOLLAR TRENDS
Central banks across the world have been increasing their gold reserves, adding further support to prices. At the same time, a softer US dollar has made gold cheaper for international buyers, fuelling demand.
So far this year, gold has gained nearly 39%. Analysts say the long-term outlook remains strong, though the metal may face some resistance as it approaches the $3,900 per ounce mark globally.
For Indian buyers, the surge means higher costs for jewellery and investment purchases. But for investors, the rally signals that gold is still a powerful hedge in times of economic uncertainty.