Gold eyes best week since 2020 amid global uncertainty

Gold reached an all-time high above $4,300 per ounce on Friday (October 17), positioning itself for its strongest weekly gain in five years. Spot gold climbed 0.3% to $4,336 per ounce as of 0233 GMT, after hitting a session peak of $4,379 an ounce.

US gold futures for December delivery rose 1% to $4,349 an ounce.

In India, the surge translated to ₹13,277 per gram for 24-karat gold, ₹12,170 per gram for 22-karat gold, and ₹9,958 per gram for 18-karat gold (10-gram rates).

Bullion has gained around 8% this week, marking its strongest week since March 2020.

Factors driving the rally

Market analysts attribute the rally

to a combination of global uncertainties, expectations of US interest rate cuts, and ongoing safe-haven buying.

Tim Waterer, Chief Market Analyst at KCM Trade, noted, “$4,500 for gold could arrive sooner than expected, depending on how long concerns about US-China trade and the government shutdown linger.”

China recently accused the US of creating panic over rare earth controls while rejecting calls to reverse export restrictions. Meanwhile, Federal Reserve Governor Christopher Waller voiced support for another rate cut amid labour market concerns. Investors now anticipate a 25-basis-point reduction at the Fed’s October 29–30 meeting and a further cut in December.

On Wall Street, concerns over US regional bank weaknesses contributed to market volatility, reinforcing demand for non-yielding bullion. “The flare-up in US regional bank credit concerns has given traders one more reason to buy gold,” Waterer said.

Technical Outlook

Rahul Kalantri, VP Commodities at Mehta Equities, observed that the gold market is enjoying strong technical momentum. The dollar index fell, 10-year US bond yields slipped below 4%, and sell-offs in crypto assets further supported bullion.

He highlighted gold support levels at $4,265–4,300 per ounce and resistance at $4,368–4,395 per ounce.

Geopolitical catalysts

Geopolitical developments also contributed to the rally. US President Donald Trump and Russian President Vladimir Putin agreed to another summit on the Ukraine war. Western nations, including the UK, continued to impose sanctions on Russian oil firms, adding further risk-driven momentum to safe-haven buying.

Gold has now surged over 65% year-to-date, driven by central bank purchases, robust ETF inflows, geopolitical tensions, and expectations of further rate cuts.

--With Reuters inputs