Gold rate today: Following the safe-haven demand for precious metals after the , which fueled optimism for a , gold prices extended their rally for the seventh straight week. The finished at ₹1,18,100 per 10 grams, logging a weekly gain of 2.79%. Before settling above the ₹18,000 level, MCX gold rate climbed to a new peak of ₹1,18,444 per 10 gm as well. In the international market, spot gold price surged to a new lifetime high of $3,896.91 per ounce, underscoring the global appeal of the yellow metal.
According to experts, the primary reason for the gold price rally can be attributed to the US shutdown, which fueled speculations about the US Fed rate cut in the upcoming US Fed meeting. However, weakness in the US dollar, enabling the Indian National Rupee (INR) to regain some lost ground, also fueled gold prices in the domestic market. They said that gold prices are expected to remain on an uptrend and suggested that investors maintain a buy-on-dips strategy for the near-term targets of ₹1,21,000 and ₹1,25,000 per 10 gm, respectively.
US shutdown fuels safe-haven demand for gold
Speaking on the reason for the continuous rally in , Sugandha Sachdeva, Founder of SS WealthStreet, said, “The latest catalyst behind this steep rise in prices has been the US government shutdown, triggered after a Republican-backed spending bill failed to clear the Senate. Concerns about the economic fallout of a prolonged shutdown, along with delays in key economic data releases such as the US nonfarm payrolls report, injected fresh safe-haven demand into gold. Interestingly, this rally occurred even as China entered its Golden Week holidays, a period when physical demand typically eases, highlighting that investment demand is currently the dominant driver. Silver too hit a fresh record high of ₹. 146,975 per kg in domestic markets, with weekly gains of 2.61%, while in international markets, it climbed to $48.36 per ounce (spot).”
US Fed rate cut in focus
“For seven straight sessions, gold prices have been climbing due to demand for safe-haven assets, inflation uncertainty, and US Fed rate cut expectations. Jerome Powell’s cautious tone initially strengthened the US dollar after the US Fed’s recent interest rate cut, but the outlook for gold remains positive. The potential for stagflation, which is defined as slower economic growth coupled with constant inflation, is one factor driving up prices; further assistance is anticipated from a rate cut later on,” said Ross Maxwell, Global Strategy Lead at VT Markets.
On other triggers that are lending support for gold prices to sustain at higher levels, Sugandha Sachdeva said, “ADP private-sector employment data pointed to a cooling job market, with a loss of 32,000 jobs in September, further raising expectations of a 25-bps rate cut by the US Fed in October. Besides, global gold ETFs reflected a strong investment appetite. The SPDR Gold Trust added about $4 billion in assets under management over the past two weeks, equivalent to 3% of its overall AUM.”
Sugandha said that global central banks added a net 15 tonnes of gold in August, reversing the stagnation seen in July. With central banks already holding nearly one-fifth of all mined gold, their continued accumulation underscores long-term confidence. Heightened geopolitical tensions between Russia and Ukraine also remained a strong driver of safe-haven demand, further reinforcing the bullish undertone.
Gold price outlook
Expecting the bull run to continue further, Ross Maxwel of VT Markets said, “Technically, gold price is in overbought territory, but any short-term corrections that are anticipated are more likely to be the consequence of profit-taking than to be a sign of a fundamental change. The positive argument for gold is further supported by central bank purchases, rising exchange-traded fund (ETF) inflows, and persistent geopolitical worries. The $4,000 level may act as a psychological barrier, but the long-term trend remains positive as long as the fundamental factors don’t alter. Using a dollar-cost averaging strategy is still a wise way for investors to take advantage of gold’s reputation as a trustworthy store of value and protect themselves from risk.”
On triggers that may continue to fuel gold prices, Sugandha Sachdeva of SS WealthStreet said, “The backdrop for precious metals remains highly supportive, driven by a mix of US economic uncertainty, accommodative Fed expectations, robust ETF inflows, central bank accumulation, and heightened geopolitical risks. While prices are stretched and ripe for short-term corrections, the structural drivers suggest that both gold and silver remain on a higher trajectory, keeping them firmly in the spotlight for investors seeking stability and diversification.”
Gold rate today: Key levels to watch
On key levels regarding gold rates today, Sugandha Sachdeva said, “The near-term support for gold rate today lies in the ₹1,13,800 to ₹1,15,000 per 10 gm range. As long as this zone holds, the outlook remains firmly positive, where gold could head higher towards ₹1,21,000 to ₹1,25,000 per 10 gm.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.