Gold prices soared to unprecedented levels today, breaking past key thresholds as investors rush toward safe-haven assets in a turbulent macroeconomic environment. The rally reflects intensifying geopolitical tensions, expectations of central bank easing, and a weak U.S. dollar.
In international markets, spot gold hit a fresh record high of 4,059.30 per dollar ounce before settling around 4,044.29 dollar as of 02:53 GMT. In the Indian market, gold prices have likewise smashed previous records, driven by spillover from glob al trends and domestic demand ahead of festive and wedding seasons. On October 13, 2025, 24-karat gold crossed Rs 1,25,400 per 10 grams in major cities. Other purity grades also saw new peaks: 22K gold reached Rs 1,14,950 for 10 grams. Some reports put 24K even higher, citing Rs 1,25,070 per 10 g. MCX gold futures earlier touched Rs 1,23,977 per 10 g in intraday trade. Jewelers in Jaipur and other centers are already adjusting their offering mixes shifting toward 18K and 14K products to accommodate more price-sensitive buyers.
What’s fueling the gold prices surge?
New tariff threats between the U.S. and China have inflamed market jitters. President Trump has floated 100 Pc tariffs on Chinese imports, triggering fears of a renewed escalation. China responded with retaliatory rhetoric, further spooking global markets. Broadening geopolitical instability has amplified safe-haven demand.
Market participants now widely expect the Federal Reserve to cut rates soon, given signs of slowing growth in the US and global headwinds. Lower interest rates erode the appeal of yield-bearing assets and weaken the dollar, making gold more attractive.
The rally has also been supported by continuous gold buying by central banks and inflows into gold-backed funds. Bank of America, for instance, boosted its gold price projection to 5,000 per ounce dollar by 2026, citing stronger investment demand.
In India, demand from consumers ahead of Dhanteras and wedding season has added fuel to the rally. Retail investors are also pushing up prices of Sovereign Gold Bonds (SGBs) in secondary markets, as they are easier to hold and come with interest further tightening physical gold availability.