Gold prices at all-time high: Factors driving the rally

Gold prices climbed to an all-time high in India on Monday (September 29), tracking a global surge and pressure from a weakening rupee. Domestic gold futures rose 0.74% to ₹1.14 lakh per 10 grams in early trade, marking their highest level to date.The rally coincided with international spot prices crossing $3,800 an ounce for the first time. At 04:32 GMT, spot gold was up 1.1% at $3,800.09 per ounce, while US gold futures for December delivery advanced 0.6% to $3,830 an ounce.

Rising expectations of interest rate cuts by the US Federal Reserve have fuelled investor demand for the precious metal.

The rupee’s slide near a record low of 88.71 per dollar has further intensified domestic price gains.Market view

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said the trend remains firmly positive.Darshan Desai, CEO of Aspect Bullion & Refinery, said, “Gold prices remain near all-time highs, driven by fears that a failure to reach a spending resolution by Tuesday could trigger a shutdown of US government services. Despite a stronger US dollar, expectations of further interest rate cuts by the Federal Reserve, concerns over central bank independence, and continued central bank and ETF demand are supporting elevated prices. Any dip in prices is likely to attract renewed buying interest.”

Analysts also note that domestic trends, such as robust festive demand and profit-taking on old jewellery, are contributing to market momentum.

Support levels are expected around ₹1.12 lakh per 10 grams, with resistance near ₹1.15 lakh per 10 grams, suggesting continued volatility in the short term.

-With Reuters inputs

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