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In India, the price of 24K gold rose by ₹10 to reach an all-time high of ₹90,450 per 10 grams, while 22K gold climbed to ₹82,910 per 10 grams in major cities, according to Upstox data.
High inflation, a weaker rupee, and strong demand for safe-haven assets have supported gold’s rally
in the domestic market.
Globally, spot gold was up 0.1% at $3,049.89 an ounce as of 0210 GMT, after touching a record high of $3,055.96 per ounce earlier in the session.
US gold futures gained 0.6% to $3,058.40 per ounce.
The Federal Reserve kept interest rates unchanged at 4.25%-4.50% on Wednesday but signaled two possible rate cuts by the end of 2025.
Lower interest rates make gold more attractive as it reduces the opportunity cost of holding the non-yielding asset.
“Gold is benefiting from uncertain market conditions, geopolitical tensions, a weaker US dollar, and expectations of interest rate cuts,” said Dick Poon, General Manager at Heraeus Metals Hong Kong Ltd.
Key drivers of the rally
Several factors have contributed to gold’s rapid rise:
Geopolitical risks:
Renewed tensions in the Middle East, including Israel’s military operations in Gaza, have increased safe-haven demand.
Trade war concerns: The return of US tariffs under the Trump administration has heightened global economic uncertainty.
Inflation fears: Persistent inflation and concerns over slower global growth are pushing investors towards gold as a hedge.
Technical outlook
According to Rahul Kalantri, VP Commodities at Mehta Equities, gold has support at $3,027-$3,010 per ounce and resistance at $3,068-$3,082 per ounce.
In India, gold has support at ₹88,340-₹87,980 per 10 grams, with resistance at ₹89,050-₹89,450 per 10 grams.
Investment outlook
Gold has hit 16 record highs in 2025, with four instances surpassing the $3,000 per ounce milestone.
Experts believe gold could continue its bullish run if economic uncertainty persists. However, some analysts caution that short-term corrections are possible.
“Given gold’s strong Q1 performance, a correction is likely, but dips have been well supported. Resistance could emerge around $3,090-$3,100 per ounce,” said Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery.
With central banks maintaining their gold purchases and investors seeking stability, bullion remains a favored asset amid economic and geopolitical uncertainties.
–With Reuters inputs
