Did Gold Prices Really Hit Historic Highs Globally with Indian Rates at Rs 1.22 Lakh on MCX?
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Synopsis
Gold prices have surged to historic highs, exceeding $4,000 per ounce globally and reaching Rs 1.22 lakh on MCX in India. This unprecedented milestone is driven by increased demand for safe-haven assets amid global economic uncertainties.
Key Takeaways
- Gold prices have surpassed $4,000 per ounce globally.
- In India, prices hit Rs 1,22,101 per 10 grams.
- Increased demand for safe-haven assets is driving the surge.
- Speculation about interest rate cuts by the US Federal Reserve is influencing market trends.
- Gold has strong support and resistance levels noted by analysts.
New Delhi, Oct 8 (NationPress) Gold prices have achieved an unprecedented milestone as of Wednesday, surpassing the $4,000 per ounce threshold in international markets for the very first time. The precious metal peaked at a staggering $4,002.53 during spot trading, while December gold futures on the US Commodity Exchange increased by 0.5 percent to reach $4,025 per ounce.
This remarkable surge in gold prices is largely attributed to the heightened demand for safe-haven assets, as investors look for security amid escalating global economic uncertainty and geopolitical tensions.
Furthermore, speculation regarding potential interest rate cuts by the US Federal Reserve has also contributed to this rally.
In India, gold prices have similarly skyrocketed, achieving fresh all-time highs on the Multi Commodity Exchange (MCX).
MCX Gold December futures broke the Rs 1,22,000 per 10-gram barrier for the first time, reaching a new high of Rs 1,22,101 during early trading.
During this early trading session, gold futures were seen at a 0.69 percent increase, trading at Rs 1,21,949 per 10 grams, while silver futures rose by 0.73 percent, reaching Rs 1,46,855 per kg.
The yellow metal has experienced a robust upward trajectory throughout the year, bolstered by significant central bank purchases, consistent inflows into gold ETFs, and a weakening US dollar.
Domestic spot gold prices have surged over 55 percent this year, mirroring global bullish sentiment.
Experts predict that gold's record-setting ascent may continue if global uncertainties linger and the Federal Reserve considers rate cuts in the upcoming months.
"Gold prices surpassed $4,000 per ounce as investors gravitated toward safe-haven assets amid escalating global uncertainties," analysts stated.
"Factors such as the US government shutdown, political upheaval in France, economic distress in Japan and Argentina, alongside the escalation of the Russia-Ukraine conflict, are driving safe-haven purchases in precious metals," they added.
Analysts note that gold has support levels at $3950-3920 and resistance levels at $4020-4045. Silver maintains support at $47.70-47.40 and resistance at $48.50-48.90.
Point of View
I believe these soaring gold prices reflect a critical moment in economic history. The growing demand for safe-haven assets amidst global uncertainties indicates that investors are looking for stability in tumultuous times. Our nation must stay informed and responsive to these market trends.
NationPress
08/10/2025
Frequently Asked Questions
What factors are contributing to the rise in gold prices?
The rise in gold prices is primarily due to increased demand for safe-haven assets, geopolitical tensions, and speculation about potential interest rate cuts by the US Federal Reserve.
How high have gold prices risen in India?
In India, gold prices have reached a record high of Rs 1,22,101 per 10 grams on the Multi Commodity Exchange (MCX).
What does the increase in gold prices indicate about the economy?
The increase in gold prices suggests growing economic uncertainty, leading investors to seek stability in precious metals.
What support and resistance levels are analysts observing for gold?
Analysts have identified support levels for gold at $3950-3920 and resistance levels at $4020-4045.
Why is gold considered a safe-haven asset?
Gold is considered a safe-haven asset due to its historical stability and value retention during times of economic and geopolitical instability.
