Gold Prices Surge to Record Highs in India Amid Global Uncertainty and Festive Demand

Gold prices in India have reached new record highs in early October 2025, reflecting growing investor demand amid global economic uncertainty and the onset of the festive season. On October 1st, 24-carat gold surged past ₹1,21,000 per 10 grams in the national capital, a rise of about ₹1,100 compared to previous rates. The price for 22-carat gold also followed suit, climbing to ₹1,08,750 per 10 grams in Hyderabad, marking significant gains in key markets across the country

Reasons Behind the Price Surge

The recent spike in gold prices has been driven largely by multiple factors, including the ongoing U.S. government shutdown, which has injected uncertainty into global markets. The political deadlock in Washington has raised concerns over economic stability, prompting investors worldwide to seek refuge in gold as a safe-haven asset.

Additionally, expectations of potential U.S. Federal Reserve interest rate cuts have further buoyed gold prices. A weaker U.S. dollar, coupled with geopolitical tensions and inflationary pressures, has reinforced gold’s appeal as a reliable store of value. After reaching historic highs, gold prices slightly corrected on October 2, with 24K gold dropping to ₹1,18,690 per 10 grams. Experts foresee ongoing volatility but maintain a positive outlook for gold throughout 2025, recommending diversified investment approaches like gold ETFs and digital gold for risk management.

This price rise highlights gold’s enduring status as a hedge against uncertainty, amplified by seasonal buying trends in India.