By Samannay Biswas
Copyright timesnownews
Gold prices are trading at record highs in both global and Indian markets, with momentum fueled by festive demand, a weaker US dollar, and rising safe-haven appeal. According to Times of India, analysts believe that while a short-term correction in bullion cannot be ruled out, the downside is expected to remain limited as multiple bullish drivers remain intact. In Mumbai, 24-carat gold is trading near Rs 117,500 per 10 grams, while 22-carat rates hover close to Rs 105,000. Globally, spot gold has surged toward $3,820–$3,850 per ounce, setting the stage for a strong Q4 rally. Silver, too, has joined the bull run, crossing Rs 1,40,000 per kg in select Indian markets, said a TOI report. Key Drivers of the Gold Price Boom Festive Demand in India: With Navratri underway and Diwali plus wedding season around the corner, jewellery buying has spiked. Seasonal demand continues to support physical gold consumption despite elevated prices. (TOI Business Desk)Weakness in the US Dollar: The dollar’s slide has made bullion cheaper for global buyers, lifting demand worldwide.Safe-Haven Appeal: Concerns over stagflation, slowing global growth, and geopolitical instability are pushing investors into gold as a hedge against inflation and currency risk.ETF and Futures Flows: Speculative positions in gold ETFs and futures remain elevated, signaling continued investor interest.Central Bank Buying & De-Dollarization: Since the Russia-Ukraine conflict, central banks have aggressively diversified into gold, lifting reserves to record levels. Gold now represents nearly 28% of non-US global forex reserves, according to market data cited by TOI.Fed Rate Cuts: The Federal Reserve lowered its benchmark rate to 4.00%–4.25% in September and signaled further easing. Markets are already pricing in an additional 25 bps cut in October and another in December.Could There Be a Correction? Analysts caution that while momentum is strong, risk factors remain: Profit-booking at peak levels may trigger volatility.Hawkish Fed surprises could reverse sentiment if inflation re-accelerates.India’s Current Account Concerns: A surge in gold imports, unless balanced by strong exports, could pressure India’s external balance.Affordability Risks: With gold near lifetime highs, some buyers may reduce purchases, moderating domestic demand. Weekly Price Outlook India (MCX Futures): Analysts see near-term gold targets at Rs 114,500–Rs 115,300 per 10g.Global Spot Gold: Prices may extend to $3,820–$3,850/oz.Silver: Potential upside of $45–$46/oz globally, or Rs 1,37,000–Rs 1,38,000 per kg in MCX futures. Gold remains firmly in a bull market, supported by festive demand in India, dovish monetary expectations in the US , and safe-haven buying globally. While a correction is possible, most analysts expect any pullback to be short-lived. Unless the Fed turns unexpectedly hawkish, bullion looks poised to test new lifetime highs in the coming weeks.
