Gold prices soared to a record high of $4,380 per ounce on Friday, October 17, driven by expectations of U.S. interest rate cuts, heightened geopolitical tensions, and strong safe-haven demand. In India, 24-karat gold traded close to ₹1.30 lakh per 10 grams.
Analysts attribute the surge to dovish signals from the U.S. Federal Reserve. Chair Jerome Powell noted signs of a cooling labor market and emphasized that rate decisions would be taken “meeting by meeting.” Markets are now pricing in two 25-basis-point rate cuts in October and December.
Matt Simpson of StoneX said that the combination of the U.S. government shutdown and Powell’s comments has accelerated gold’s rally. Ongoing U.S.–China tensions, including new trade restrictions and retaliatory port fees, have further strengthened gold’s safe-haven appeal.
In India, gold prices have climbed 4.7% over the past three days. LKP Securities’ Jateen Trivedi expects prices to remain between ₹1.24 lakh and ₹1.27 lakh per 10 grams. Dhanvesttor CEO Anooshka Soham Bathwal highlighted gold’s long-term stability, liquidity, and reliability as a hedge against inflation and uncertainty.
