Global gold prices hit record $3,500 per ounce. What should Indian buyers do now?

Gold prices have surged to an all-time high of around $3,500 per ounce globally, with Indian buyers facing domestic rates nearing ₹1 lakh per 10 grams — a historic level driven by global economic uncertainty, Federal Reserve rate-cut expectations, and a weakening rupee.

Spot gold touched ~$3,500/oz on September 2, marking its highest-ever level. The rally — up 40% year-on-year — is fueled by rising geopolitical tensions, safe-haven buying, central bank stockpiling, and expectations of U.S. monetary easing.

In India, where gold is both a cultural mainstay and an investment tool, the price spike has sharply pushed up domestic rates. A weaker rupee has amplified the impact of international pricing, bringing local costs near ₹1 lakh per 10 grams — an unprecedented threshold.

For buyers, the advice is clear: proceed with caution.

“Gold is at its peak. Avoid bulk buying,” say financial advisors. Instead, they recommend spreading out purchases via SIPs in gold ETFs or sovereign gold bonds to average out cost and retain liquidity.

Jewellery buyers are also urged to verify purity. Always insist on BIS hallmarking and certificates when buying coins, bars, or ornaments.

Experts warn that while gold remains a strong hedge against inflation and economic volatility, it can be volatile. Indian investors are advised to limit gold exposure to 5–10% of their portfolios, especially at these elevated levels.

For festive or wedding shopping, lighter pieces or lower-karat options can help stay within budget. Another popular strategy: trading in old gold for new jewellery rather than purchasing outright at peak prices.

Key tips for Indian gold buyers:

• Track daily gold rates and compare across reputable stores
• Prioritize certified, hallmarked gold
• Use digital options like ETFs or sovereign bonds for investing
• Avoid panic buying; consider staggered purchases
• Consider exchanging old gold to offset high costs