Gold surges to all-time high globally; Indian prices mirror rally

Gold prices hit all-time high on Wednesday (October 1) as investors flocked to safe-haven assets amid renewed political and economic uncertainty in the United States.

Spot gold climbed to $3,872.87 per ounce, while US gold futures advanced to $3,901.40 an ounce. The rally comes as the risk of a US government shutdown rises and soft labour market data boosts expectations of interest rate cuts by the Federal Reserve.

In India, bullion prices tracked theglobal uptrend. As per Goodreturns:

• 24K gold is at ₹11,864 per gram


• 22K is at ₹10,875 per gram


• 18K is at ₹8,898 per gram

Weak dollar and shutdown fears lift bullion

A softer dollar helped make gold more attractive to overseas buyers. The dollar index hovered near a one-week low, adding tailwinds to prices.

“The political standoff over US government funding and broader geopolitical uncertainty are pushing investors to hedge through gold,” said Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery.

The US Senate failed to pass a funding extension on Tuesday (September 30), increasing the likelihood of a federal shutdown. A halt in government operations could delay key data releases, including Friday’s non-farm payrolls.

Rate cut bets accelerate after labour data

The latest JOLTS report pointed to softening labour conditions, with job openings inching up only marginally and hiring slowing. Traders are now pricing in a 97% chance of a 25-bps Fed rate cut this month and a 76% probability in December, according to the CME FedWatch tool.

Michael Hsueh, Precious Metals Analyst at Deutsche Bank, said the rally still has momentum and "further strength in the near term" looks likely.

Gold has already gained over 47% in 2025, supported by risk aversion and a shift toward lower interest rates.

India demand strong despite high prices

Rahul Kalantri, VP Commodities at Mehta Equities, said hedging activity intensified late on Tuesday (September 30) as shutdown fears deepened.

“India’s gold and silver imports hit record highs in September despite elevated prices. The rupee’s slide has further supported domestic bullion,” he noted.

With political risks rising, the dollar under pressure and rate cuts in focus, analysts expect bullion to stay elevated in the near term.

-With Reuters inputs