CHENNAI: Gold prices rallied sharply on Monday, October 6, climbing to fresh record highs as investors sought safety amid global market uncertainty and a weaker dollar.
In early trade, spot gold crossed the US $3,900 per ounce mark for the first time, reaching an intraday peak of around $3,924.39/oz before stabilising near $3,922.28/oz. US gold futures also advanced strongly, reflecting robust global demand for the yellow metal.
In India, gold mirrored the global surge. On the Multi Commodity Exchange (MCX), December gold futures gained Rs 1,087, or nearly 0.9%, to touch about Rs 1,19,200 per 10 grams. Retail prices of 24-carat gold hovered close to Rs 11,940 per gram, approaching all-time highs in major cities like Delhi and Mumbai.
Analysts attributed Monday’s surge to a combination of geopolitical and macroeconomic factors:
Safe-haven demand: Heightened concerns over a potential US government shutdown and global growth worries pushed investors toward gold.
Monetary policy expectations: Traders bet that the US Federal Reserve could move closer to another rate cut, making non-yielding assets like gold more attractive.
Currency volatility: The Japanese yen’s sharp decline and broader weakness in Asian currencies encouraged more defensive positioning in gold.
Technical momentum: After consolidating in the previous sessions, gold broke through major resistance levels near $3,880/oz, triggering fresh buying.
During the Asian session, prices showed high volatility but maintained an upward bias. Technical analysts placed the next resistance level near $3,950–$3,970/oz, while support was seen around $3,880/oz. In rupee terms, MCX gold may find resistance near Rs 1,20,000 and support around Rs 1,18,000 per 10 grams.
Silver also extended gains alongside gold. On the MCX, silver futures jumped to around Rs 1,47,000 per kg, supported by industrial demand and tracking the broader safe-haven rally. Platinum and palladium, however, traded mixed amid uneven industrial sentiment.
Analysts expect gold to remain volatile but firmly 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. If the dollar weakens further and central banks maintain a dovish tone, gold could potentially test the US $4,000/oz mark before the year ends.
Overall, Monday’s strong opening marked another milestone in gold’s historic run in 2025, underscoring its position as the preferred refuge in times of global financial unease.