Gold rates cross ₹1.16 lakh per 10 grams for the first time in India

Gold prices in India surged to all-time high on Tuesday (September 30), with the rate of 24-carat gold crossing ₹1.16 lakh per 10 grams for the first time.

The rise mirrors gains in global bullion prices, where spot gold touched $3,848.65 per ounce, adding nearly 12% in September. This makes it the metal’s strongest monthly performance since August 2011.

US gold futures for December delivery also firmed to around $3,877 per ounce.

In international markets,

investor interest has strengthened amid heightened risk aversion. Concerns over a potential shutdown of the US government and rising expectations of further Federal Reserve rate cuts have driven flows into gold.

Traders now assign nearly 89% probability to a 25-basis-point rate cut at the Fed’s next policy meeting, according to the CME FedWatch tool.

Analysts note that lower interest rate expectations and political uncertainty are supporting bullion’s momentum.

Tim Waterer, Chief Market Analyst at KCM Trade, said the safe-haven appeal has accelerated gains, and market participants view the $4,000 per ounce level as a possible year-end target, should current dynamics persist.

Investor appetite is also reflected in holdings of gold-backed exchange-traded funds. SPDR Gold Trust, the world’s largest such fund, reported its holdings climbed to 1,011.73 metric tonnes, the highest since July 2022.

Domestic factors have reinforced the rally.

The rupee’s depreciation against the US dollar has amplified local prices at a time when global bullion is rising.

Market participants are watching for additional triggers in the weeks ahead, particularly US economic data on jobs and manufacturing.

Rahul Kalantri, Vice President (Commodities) at Mehta Equities, said the trend remains upward, noting that gold has been trading above key support levels in both global and Indian markets.

While investor allocations have evolved from physical gold to instruments such as exchange-traded funds, sovereign gold bonds, and digital platforms, analysts say the metal’s appeal remains closely tied to its role as a store of value during uncertainty. Central bank purchases have also contributed to the structural demand over recent years.

-With Reuters inputs