Gold prices surged to record levels on Monday, October 6, as investors sought safety amid global market uncertainty and a weaker US dollar.
In early trade, spot gold crossed the US $3,900 per ounce mark for the first time, reaching an intraday high of around $3,924.39 before stabilizing near $3,922.28/oz. US gold futures also rose sharply, reflecting strong global demand for the yellow metal.
In India, gold mirrored the global rally. On the Multi Commodity Exchange (MCX), December gold futures gained Rs 1,087, or nearly 0.9%, reaching about Rs 1,19,200 per 10 grams. Retail prices of 24-carat gold hovered near Rs 11,940 per gram in major cities such as Delhi and Mumbai, approaching all-time highs.
Analysts attribute the surge to several key factors:
- Safe-haven demand: Concerns over a potential US government shutdown and global growth worries drove investors toward gold.
- Monetary policy expectations: Bets on a possible US Federal Reserve rate cut made gold, a non-yielding asset, more attractive.
- Currency volatility: Weakness in the Japanese yen and other Asian currencies encouraged defensive positioning in gold.
- Technical momentum: Gold broke through key resistance near $3,880/oz, triggering fresh buying.
During the Asian session, gold showed volatility but maintained an upward trend. Technical analysts suggest the next resistance level could be around $3,950–$3,970/oz, while support is near $3,880/oz. In India, MCX gold may face resistance around Rs 1,20,000 and support near Rs 1,18,000 per 10 grams.
Other precious metals: Silver also extended gains, with MCX silver futures reaching around Rs 1,47,000 per kg, supported by industrial demand. Platinum and palladium traded mixed amid uneven industrial sentiment.
Analysts expect gold to remain volatile but strongly supported in the near term. Persistent global risks, including US fiscal uncertainty, currency fluctuations, and geopolitical tensions, are likely to keep safe-haven demand elevated. A weaker dollar and dovish central bank policies could push gold toward US $4,000/oz by year-end.
Monday’s strong opening marked another milestone in gold’s historic run in 2025, reinforcing its status as a preferred refuge in times of global financial uncertainty.
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