New Delhi: Gold continues its unstoppable rally, with experts predicting that the precious metal could soon break the $3,100 per ounce barrier. The metal’s historic surge comes as geopolitical tensions, economic fears, and central bank policies drive demand for this traditional safe-haven asset.
So far in 2025, gold has shattered records 16 times, surpassing the $3,000 per ounce threshold on four separate occasions. In India, the surge has been equally dramatic, with 24K gold reaching Rs 90,450 per 10 grams and 22K gold climbing to Rs 82,910 per 10 grams.
On the global stage, spot gold soared to $3,049.89 per ounce, briefly touching a record high of $3,055.96. Meanwhile, US gold futures spiked by 0.6% to $3,058.40 per ounce.
Multiple forces are fueling gold’s meteoric rise. The intensification of conflicts in the Middle East, particularly Israel’s military actions in Gaza, has led investors to seek safety in gold. Additionally, persistent inflation, fears of a slowing global economy, and expectations of a US Federal Reserve rate cut have amplified the metal’s appeal.
While the Fed held interest rates steady at 4.25%-4.50% last week, policymakers hinted at two potential rate cuts by the end of 2025. Lower interest rates diminish the opportunity cost of holding gold, making it an increasingly attractive investment.
Central banks and Gold Exchange Traded Funds (ETFs) continue to be key market drivers. The Reserve Bank of India (RBI) has aggressively increased its gold reserves, adding 72.6 tonnes in 2024—bringing gold’s share to 10.6% of the country’s total forex reserves.
Despite record prices dampening jewelry purchases, gold remains a top investment choice. Indian gold ETFs saw a staggering net inflow of Rs 112 billion in 2024, underscoring investors’ unwavering faith in the metal’s long-term value.