Gold prices have reached unprecedented levels worldwide, propelled by robust investor interest, acquisitions by central banks, and anticipations of reductions in interest rates. Gold continues to hover close to its historical highs, supported by strong global sentiment. In light of the mixed domestic indicators, the prevailing bullish outlook and optimistic broker forecasts persist in bolstering prices. In a remarkable rally that has captured the attention of global markets, gold prices have surged to record levels, delivering historic gains that have captivated bullion investors around the world.
Gold futures reached a new high, climbing to Rs 1,35,698 per 10 grams, an increase of nearly Rs 1,500 or 1.10%, aligning with international prices that have recently achieved record levels. Globally, spot gold surged 1% to a record $4,384.50 an ounce, while U.S. gold futures mirrored this trend, increasing 0.7% to $4,416.30. The strength reflects sustained demand across investment channels as markets reassess monetary policy trajectories and real interest rate dynamics.
Upon returning home, Indian markets concluded with mixed signals. On Friday, MCX Gold February futures settled at Rs 1,34,196 per 10 grams, reflecting a decline of 0.24%. A slight improvement in the rupee constrained domestic gains, even in the face of a strong global rally. Nevertheless, the broader trend remains positive, underpinned by international price action and continued investor interest in gold as a store of value.
The significant rise in gold prices can be attributed to a confluence of geopolitical tensions, robust central bank purchases, and heightened expectations of interest rate reductions in 2026. Gold has appreciated by 67% year-to-date, underscoring the scale of the rally. Recent enthusiasm has also been fueled by the U.S. Federal Reserve’s third interest rate cut of 25 basis points this year and signs of moderating inflation, with CPI easing to 2.7% year-over-year. Additionally, the Bank of Japan’s recent rate hike, coupled with a less-than-hawkish tone, has indirectly supported gold prices by reinforcing global demand for hard assets.