The price of 22-karat gold stood at ₹10,130 per gram, while 18-karat gold was priced at ₹8,288 per gram.
Although elevated prices may deter some price-sensitive households, jewellers and analysts note that festive demand and investment-led buying remain supportive.
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA), said, “There is domestic buying interest with the festive and wedding season starting, although these prices are likely to deter some price-sensitive households. Investment-led buying and ETF inflows are expected to continue despite record prices.”
Darshan Desai, CEO, Aspect Bullion & Refinery, added that profit-taking has been seen at higher levels, but dips are likely to attract buyers.
“Geopolitical tensions and expectations of a larger-than-expected rate cut by the Federal Reserve will keep supporting prices. However, it remains to be seen whether record high prices will impact consumer demand as the festive season picks up," Desai said.
Global drivers of gold rally
Globally, spot gold rose 0.3% to $3,635.32 per ounce, holding above the key $3,600 an ounce level, after hitting all-time high of $3,673.95 an ounce on Tuesday (September 9).
US gold futures for December delivery slipped 0.2% to $3,673.70 an ounce.
Analysts cite several factors fueling the rally:
Rate cut bets: Markets are fully pricing in a 25-basis-point cut at the Fed’s September meeting.
- Weaker US economy: Revised data showed nearly one million fewer jobs over the past year, while nonfarm payrolls also signaled labor market weakness.
- Geopolitical uncertainty: Ongoing conflicts in the Middle East and Central Asia continue to push safe-haven demand.
- Central bank buying: Sustained purchases and ETF inflows highlight long-term investor confidence.
Market outlook
Rahul Kalantri, VP Commodities, Mehta Equities, noted that gold remain volatile.
“In India, gold has support at ₹1.08 lakh–1.07 lakh per 10 grams and resistance at ₹1.08 lakh–1.09 lakh per 10 grams.”
Gold has gained 38% so far in 2025, extending last year’s 27% rise.
With US inflation data due later this week and the Federal Reserve’s September policy decision ahead, traders expect prices to remain firm. For Indian households, the balance between festive demand and record valuations will determine the next leg of domestic price movement.
-With Reuters inputs
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