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What is the story about?
Gold prices eased on Thursday (October 9) after touching all-time highs, as traders locked in gains following a powerful rally driven by global economic uncertainty and expectations of US rate cuts.
Spot gold fell 0.4% to $4,020.99 per ounce as of 0302 GMT, retreating from Wednesday’s (October 8's) record $4,059.05 an ounce.
US gold futures slipped 0.7% to $4,040.70 an ounce.
In India, prices stood at ₹12,415 per gram for 24-karat gold, ₹11,380 for 22-karat, and ₹9,311 for 18-karat, according to Goodreturns.
Profit-taking after record-breaking rally
The pullback followed a four-day surge that took gold above the $4,000 an ounce mark for the first time, supported by persistent inflation concerns and demand for safe assets.
Signs of a potential ceasefire between Israel and Hamas, and overbought market conditions, prompted short-term profit-taking.
“The first step toward a peace deal in the Middle East eased safe-haven demand, but the recent rally also made gold technically overbought,” said Darshan Desai, CEO, Aspect Bullion & Refinery. “Any correction could offer a buying opportunity given ongoing geopolitical and economic risks.”
Fed expectations support bullion
Minutes from the Federal Reserve’s September meeting showed policymakers are leaning toward rate cuts amid slowing job growth, even as inflation remains above target.
Markets now expect two quarter-point cuts—one in October and another in December, according to CME FedWatch data.
Lower interest rates tend to lift gold by reducing the appeal of interest-bearing assets.
Broader market context
Investors have sought refuge in precious metals amid volatile global conditions—political turmoil in major economies, a continuing US government shutdown, and currency market weakness.
Rahul Kalantri, Vice President – Commodities at Mehta Equities, said gold remains supported by strong central bank demand and robust ETF inflows.
“Even with intermittent profit-taking, long-term momentum stays positive,” he added.
He placed gold’s support at $3,980–$3,940 an ounce and resistance near $4,055–$4,085 an ounce, while in rupee terms.
2025’s top-performing asset
Gold has gained over 55% in 2025, outperforming equities and most commodities.
“Crossing ₹1.20 lakh per 10 grams marks a psychological milestone,” said Inderbir Singh Jolly, CEO – Wealth and Asset Management at PL Capital. “This rally reflects deep structural uncertainty and signals the need for measured exposure in portfolios," he said.
Investment view
Analysts expect short-term volatility but maintain a positive medium-term outlook. With central banks diversifying reserves, ETF holdings rising, and policy easing on the horizon, gold remains a preferred hedge against inflation and market instability.
Spot gold fell 0.4% to $4,020.99 per ounce as of 0302 GMT, retreating from Wednesday’s (October 8's) record $4,059.05 an ounce.
US gold futures slipped 0.7% to $4,040.70 an ounce.
In India, prices stood at ₹12,415 per gram for 24-karat gold, ₹11,380 for 22-karat, and ₹9,311 for 18-karat, according to Goodreturns.
Profit-taking after record-breaking rally
The pullback followed a four-day surge that took gold above the $4,000 an ounce mark for the first time, supported by persistent inflation concerns and demand for safe assets.
Signs of a potential ceasefire between Israel and Hamas, and overbought market conditions, prompted short-term profit-taking.
“The first step toward a peace deal in the Middle East eased safe-haven demand, but the recent rally also made gold technically overbought,” said Darshan Desai, CEO, Aspect Bullion & Refinery. “Any correction could offer a buying opportunity given ongoing geopolitical and economic risks.”
Fed expectations support bullion
Minutes from the Federal Reserve’s September meeting showed policymakers are leaning toward rate cuts amid slowing job growth, even as inflation remains above target.
Markets now expect two quarter-point cuts—one in October and another in December, according to CME FedWatch data.
Lower interest rates tend to lift gold by reducing the appeal of interest-bearing assets.
Broader market context
Investors have sought refuge in precious metals amid volatile global conditions—political turmoil in major economies, a continuing US government shutdown, and currency market weakness.
Rahul Kalantri, Vice President – Commodities at Mehta Equities, said gold remains supported by strong central bank demand and robust ETF inflows.
“Even with intermittent profit-taking, long-term momentum stays positive,” he added.
He placed gold’s support at $3,980–$3,940 an ounce and resistance near $4,055–$4,085 an ounce, while in rupee terms.
2025’s top-performing asset
Gold has gained over 55% in 2025, outperforming equities and most commodities.
“Crossing ₹1.20 lakh per 10 grams marks a psychological milestone,” said Inderbir Singh Jolly, CEO – Wealth and Asset Management at PL Capital. “This rally reflects deep structural uncertainty and signals the need for measured exposure in portfolios," he said.
Investment view
Analysts expect short-term volatility but maintain a positive medium-term outlook. With central banks diversifying reserves, ETF holdings rising, and policy easing on the horizon, gold remains a preferred hedge against inflation and market instability.
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