Gold Prices in India Hit Record Highs: Touched ₹1.28 Lakh for the First Time

Gold prices in India soared to unprecedented levels on Tuesday, October 14, with 24-karat gold trading at ₹1.28 lakh per 10 grams. The sharp rise aligns with a global surge, as international gold rates climbed to a record $4,162 per ounce.

Global Surge Driven by Economic and Geopolitical Factors

The international rally in gold prices is being fueled by a combination of key drivers:

• Growing expectations of interest rate cuts by the US Federal Reserve
• Heightened geopolitical tensions
• Increased demand for safe-haven investments

So far in 2025, gold has jumped nearly 58%, breaching the $4,100 per ounce mark for the first time.

Domestic Demand Strengthened by Festive Buying

In India, the surge is further intensified by seasonal and local factors. The festive season, traditionally a peak period for gold purchases, is bolstering consumer demand. Additionally, currency fluctuations and gold’s historic role as a hedge against inflation continue to drive domestic investment in the metal.

Multiple Growth Catalysts

According to market experts, the current rally is underpinned by:

• Ongoing global economic uncertainties
• Prospects of monetary easing
• Strong central bank gold purchases
• Significant inflows into gold-backed exchange-traded funds (ETFs)

These factors combined have created an environment highly favourable for gold as an asset class.

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