Gold Prices Surge Past ₹1.20 Lakh Ahead of Diwali, Global Rates Cross $4,000 per Ounce

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News Orbital
October 7, 2025 • 1 views

As Diwali and Dhanteras approach, gold prices are witnessing an aggressive rally in both Indian and global markets. In 2025 alone, gold has touched an all-time high a staggering 41 times, reflecting increased investor confidence and global economic uncertainties.

Gold Price on MCX Surpasses ₹1.20 Lakh

On Tuesday morning, gold futures for December delivery were trading at ₹1,20,817 per 10 grams on the Multi Commodity Exchange (MCX), gaining ₹568 from the previous session’s close of ₹1,20,249. During early trading, prices fluctuated between ₹1,20,350 and ₹1,20,879.

Global Gold Prices Cross $4,000/oz

Internationally, gold prices have breached the $4,000 per ounce mark—a first in market history. According to a recent forecast by Goldman Sachs, gold could reach as high as $4,900 per ounce by December 2026, citing sustained global demand and market volatility.

🇨🇳 China Continues Gold Reserve Expansion

One major driver behind the price surge is China’s ongoing gold accumulation. According to a Reuters report, China’s central bank increased its gold holdings for the 11th consecutive month. As of the end of September, China's gold reserves reached 74.06 million fine troy ounces, up from 74.02 million in August—signaling its continued commitment to diversify reserves.

Why Are Gold Prices Rising?

Several key factors are contributing to the rapid rise in gold prices:

Goldman Sachs’ bullish forecast of $4,900/oz by 2026

China’s consistent monthly gold purchases

Global market uncertainties prompting demand for safe-haven assets

Seasonal spike in demand ahead of Indian festivals like Diwali and Dhanteras

What This Means for Investors

With strong festival-led demand and bullish international cues, investors are showing renewed interest in gold as a long-term hedge against inflation and volatility. Experts advise keeping a close watch on price trends in the coming weeks, especially as macroeconomic and geopolitical factors continue to evolve.

Stay tuned with NewsOrbital.com for the latest updates on gold prices, commodity trends, and economic developments from India and around the world.

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