Gold prices surge to record highs on global safe-haven demand.
In the face of global market instability and a declining dollar, gold prices surged strongly on Monday, October 6, reaching new record highs as investors sought refuge.
Spot gold first broke beyond the US $3,900 per ounce barrier in early trading, peaking intraday at about $3,924.39/oz before levelling down at about $3,922.28/oz. sharp worldwide demand for the yellow metal was reflected in the sharp increase of US gold futures as well.
Gold in India followed the worldwide trend. December gold futures on the Multi Commodity Exchange (MCX) increased by Rs 1,087, or almost 0.9%, to reach around Rs 1,19,200 per 10 grammes. In big cities like Delhi and Mumbai, 24-carat gold retail prices were close to all-time highs, at around Rs 11,940 per gramme.
Analysts credited a mix of socioeconomic and geopolitical factors for Monday’s spike:
Demand for safe havens: Investors turned to gold as a result of growing anxieties about the global economy and a possible US government shutdown.
Expectations for monetary policy: Traders wager that the US Federal Reserve may get closer to cutting interest rates again, which would increase the appeal of non-yielding assets like gold.
Currency volatility: More defensive gold positioning was prompted by the Japanese yen’s steep fall and the general weakness of Asian currencies.
Technical momentum: Gold broke through key resistance levels at $3,880/oz, igniting new buying after consolidating in the preceding days.
Price volatility was significant during the Asian session, but the trend remained upward. The next resistance level, according to technical analysts, was between $3,950 and $3,970/oz, while the support level was around $3,880/oz. In terms of rupees, MCX gold can encounter support at about Rs 118,000 per 10 grams and resistance at about Rs 120,000.
In contrast to other precious metals
Alongside gold, silver also extended advances. With the help of industrial demand and the wider safe-haven rise, silver futures on the MCX surged to almost Rs 147,000 per kilogram. However, due to varying industrial sentiment, platinum and palladium saw inconsistent trading.
In the foreseeable future, analysts anticipate that gold will continue to be volatile but well-supported. Safe-haven demand is projected to remain high due to ongoing global uncertainties, such as geopolitical tensions, currency fluctuations, and US budgetary instability. Before the year is out, gold might challenge the US $4,000/oz mark if the currency continues to decline and central banks continue to adopt a dovish stance.
All things considered, Monday’s robust start signalled yet another turning point in gold’s incredible 2025 run, highlighting its status as the go-to haven during periods of global financial instability.
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