Gold prices today: Record highs spark buying debate in India

Gold prices are soaring to new record highs in India, leaving buyers unsure whether to make a move now or wait for a potential price correction. With Diwali around the corner and global uncertainty pushing rates upward, investors are asking: is this the right time to buy?

Across India, 24K gold has crossed Rs 12,000 per gram, while 22K rates are above Rs 11,000. Silver is also on the rise, reflecting a strong precious metals rally. Globally, gold has surpassed $3,900 per ounce for the first time, fueled by safe-haven buying amid economic and geopolitical uncertainty.

What’s Driving the Rally?

Several local and international factors are propelling prices higher:

• A potential US government shutdown has delayed key economic data, increasing investor caution.

• The weakening US dollar and expectations of further Federal Reserve rate cuts have made gold more attractive.

• Ongoing geopolitical conflicts, such as the Russia-Ukraine war, are keeping risks high.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said, “Bullion markets witnessed another strong week, with gold and silver extending gains to record highs. The rally is supported by dollar weakness, declining US bond yields, geopolitical tensions, and central bank buying.” Central banks added 15 tonnes of gold in September, signaling long-term confidence.

Investor Sentiment Remains Strong

Gold continues to serve as a safe haven amid inflation concerns and global instability. Ponmudi R, CEO of Enrich Money, explained, “Gold at $3,900 an ounce signals steady demand without disturbing broader market sentiment.” Institutional investors are also participating, with increased inflows into gold-backed ETFs.

Should You Buy Gold Now?

Analysts suggest that while prices are at record highs, small corrections may occur, which could serve as buying opportunities, especially for long-term investors.

Gold is less about quick gains and more about hedging against inflation, currency depreciation, and economic shocks. Buyers planning for weddings, future expenses, or portfolio diversification may consider purchasing in small amounts, through jewellery, coins, or digital gold.

Simply put, gold remains a reliable safety net, but buying wisely—based on personal financial goals—is key.