Gold Prices Hit Record $3,872 on October 1, Amid US Uncertainty, India Rates At ₹11,864 Per Gram

Gold prices touched all-time highs on Wednesday (October 1) as investors moved into safe-haven assets. Spot gold climbed to $3,872.87 per ounce, while US gold futures advanced to $3,901.40. The rally followed renewed political and economic uncertainty in the United States. Rising bets on Federal Reserve rate cuts added further momentum to bullion.

Global Drivers

The risk of a US government shutdown weighed heavily on investor sentiment. The US Senate failed to pass a funding extension on Tuesday, raising the likelihood of halted operations. Analysts warned that delays in releasing economic data, including Friday’s payrolls, could follow. Combined with soft labour market indicators, this fuelled demand for gold.

A weaker dollar also supported the rally. The dollar index hovered near a one-week low, making gold cheaper for overseas buyers. “The political standoff over US government funding and broader geopolitical uncertainty are pushing investors to hedge through gold,” said Nicholas Frappell of ABC Refinery to Reuters. The backdrop reinforced the appeal of bullion.

Fed Rate Cut Bets

Expectations of monetary easing surged after softer US labour data. The JOLTS report showed job openings rising only marginally, with hiring slowing. Traders are now pricing in a 97% chance of a 25-basis-point rate cut this month. According to the CME FedWatch tool, there is also a 76% probability of another cut in December.

Lower interest rates typically reduce the opportunity cost of holding gold. Michael Hsueh, Precious Metals Analyst at Deutsche Bank, noted the rally retains “further strength in the near term.” Gold has already risen over 47% in 2025, reflecting sustained risk aversion. Investors are increasingly shifting to safe assets as political and economic risks escalate.

India Prices

In India, bullion followed the global surge with record domestic prices. According to Goodreturns, 24K gold traded at ₹11,864 per gram, while 22K stood at ₹10,875. Prices for 18K gold were at ₹8,898 per gram.

The rupee’s weakness against the dollar also added to the upward momentum in local bullion markets. Domestic demand remains resilient even at current valuations. Imports have been supported by festive season buying and currency depreciation.

Read More: Gold and Silver Prices Rose in International Market

Conclusion

Gold’s rally highlights the metal’s safe-haven status during periods of uncertainty. US shutdown risks, labour market weakness, and a softer dollar have strengthened demand. Domestic prices in India mirrored the global uptrend, reaching record levels across purity grades. With rate cuts in focus and political tensions rising, bullion is likely to remain elevated in the near term.

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