Gold prices surge over Rs 6,500 in a month; experts predict bullish momentum

Gold prices have witnessed a remarkable surge, climbing by Rs 6,500 over the past month to reach Rs 1,07,807 per 10 grams. This rally has been fueled by a combination of persistent global instability, rising safe-haven demand, central bank purchases, and the market’s anticipation of rate cuts by the US Federal Reserve. Investors have turned increasingly towards gold, prioritising security and stability in an uncertain economic landscape.

The sharp upward movement in gold prices has been underscored by both domestic and international factors. Jateen Trivedi, Vice President of Research at LKP Securities, explained, “Investors remain focused on the Fed’s September meeting, where rate cuts are widely anticipated. At the same time, ongoing tariff uncertainties are driving safe-haven demand. Together, these factors continue to maintain gold in a bullish structure.” This perspective reflects the broader sentiment in the market, which supports sustained upward momentum for bullion prices.

The rally has persisted despite profit-taking activities preceding the release of critical U.S. employment data. Investors have been taking gains in both gold and silver ahead of the non-farm payroll report, highlighting the impact of upcoming economic indicators on market behavior. Nonetheless, global uncertainties, including U.S. trade tariffs and continued central bank purchases, provide strong support to gold, helping maintain resilience against potential short-term declines.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said, “International and domestic developments have significantly improved investor sentiment around gold. Demand for 24-karat gold remains strong, influenced by expectations of Federal Reserve interest-rate cuts and geopolitical tensions. In India, after a strong rally earlier this month with MCX futures surging nearly Rs 3,000 per 10 grams to around Rs 1,06,856, prices have reached peak levels. Following a brief correction to Rs 1,06,338 per 10 grams today, gold has experienced volatility, but the overarching trend remains bullish. This topsy-turvy market reflects cautious optimism among analysts, who note that macroeconomic monitoring remains key for investors.”

Factors behind the surge

A major driver behind this rally is the anticipation of a Federal Reserve rate cut. Lower interest rates generally make non-yielding assets such as gold more attractive, enhancing their appeal. Trivedi emphasized, “A decisive break above current levels could open the path for further gains, while only a fall below Rs 1,06,150 would signal weakness.” The interplay between interest rate expectations and gold prices continues to dominate market observations.

Domestically, the Multi Commodity Exchange (MCX) has witnessed heightened trading activity as investors increasingly participate in gold futures. Analysts have noted that technical support levels have provided crucial stability to gold prices, with the potential for further gains if resistance points are surpassed. This domestic momentum reflects global trends, where gold continues to be a principal asset for investors seeking safe-haven opportunities.

Gold vs others

In comparison to other precious metals, gold’s performance stands out. Silver, often viewed alongside gold as a hedge, has experienced recent profit-taking but lacks the same bullish outlook. Platinum and palladium, while valuable, do not offer the same safe-haven appeal, making gold uniquely positioned in the current economic environment. This distinction underscores gold’s central role as a protective asset amid market volatility.

Market analysts also point to broader macroeconomic factors driving demand. Persistent geopolitical tensions, trade uncertainties, and inflationary pressures are fueling investor interest in gold. Central bank purchases, particularly by emerging economies, continue to support prices, ensuring steady upward momentum. As global economic conditions remain uncertain, gold is increasingly viewed as a strategic hedge.

Despite recent volatility, investor confidence in gold remains strong. Market participants are closely monitoring developments such as U.S. interest rate policies, trade agreements, and domestic demand trends. Analysts suggest that maintaining key technical levels, coupled with ongoing geopolitical risks, will likely sustain bullish sentiment in the near term.

Moreover, domestic jewellery demand continues to bolster gold prices. Seasonal festivals and wedding seasons in India create predictable surges in physical demand, reinforcing price stability. Analysts note that gold’s dual role—as both an investment and a cultural asset—enhances its attractiveness in the Indian market.

Technical indicators on MCX show key support at Rs 1,06,150 and resistance at Rs 1,08,500 per 10 grams. A break above this range could trigger further upside, while any sustained dip below support could invite short-term corrections. Analysts remain cautiously optimistic, noting that gold’s safe-haven status, coupled with potential Fed rate cuts, supports its upward trajectory.

The record-setting rise in gold prices highlights the complex interplay of global economic conditions, investor sentiment, and technical market dynamics. With central banks continuing to accumulate gold, trade uncertainties, and inflation concerns remaining prominent, bullion is poised to retain its appeal for investors seeking stability.