DBT Bureau
Pune, 18 Oct 2025
Gold prices soared to ₹1,32,000 per 10 grams on the Multi Commodity Exchange (MCX), while spot gold touched $4,380 per ounce in the international market. The rally was driven by a confluence of macroeconomic and geopolitical factors, including record central bank purchases, rate cuts by the US Federal Reserve, and a weakening US dollar. Central banks across the world reportedly bought a record 900 tonnes of gold, boosting global reserve demand and signaling confidence in the metal as a long-term store of value.
Persistent global inflation and political instability across major economies such as the US and Europe have further reinforced gold’s appeal as a hedge against currency depreciation and market volatility. Rising ETF inflows, institutional accumulation, and a surge in Asian retail demand — particularly from India during the festive season and from Chinese households — have strengthened gold’s upward momentum. Meanwhile, equity market volatility, tech-sector concentration risks, and the ongoing global de-dollarization trend have encouraged investors and central banks alike to increase their exposure to gold.
Source: Kedia Stocks & Commodities Research Pvt. Ltd
