Gold prices cross $4,500 an ounce for the first time as safe-haven demand fuels rally

Gold prices surged to all-time high on Wednesday (December 24), with spot gold crossing the $4,500-an-ounce mark for the first time, as investors continued to seek safety amid geopolitical uncertainty and rising expectations of interest rate cuts by major central banks.

The latest rally marks a sharp rise from the start of 2025, when gold was trading near $2,650 an ounce. Persistent inflation concerns, global geopolitical tensions, and a softer US dollar have collectively strengthened bullion’s appeal as a hedge against uncertainty.

Domestic prices in India

tracked the global uptrend.

On December 24, 24-karat gold was priced at ₹13,856 per gram, while 22-karat gold stood at ₹12,701 per gram. Prices for 18-karat gold were quoted at ₹10,392 per gram, according to market data.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said gold prices have moved to new levels over the past week, sustaining strong safe-haven demand.

While she expects gold to remain range-bound in the short term, she said the outlook remains positive for long-term investors.

Jateen Trivedi, Vice President (Research – Commodity and Currency) at LKP Securities, said that although prices have entered overbought territory after the recent sharp rally, the broader trend remains intact

. “As long as prices sustain above the ₹1,32,000 zone, gold is likely to retain its bullish bias, with any short-term pullbacks being corrective rather than trend-reversing,” he said.

Market participants expect gold prices to remain sensitive to macroeconomic signals, including central bank policy guidance, currency movements, and geopolitical developments.

-With Reuters inputs