Gold prices are witnessing a remarkable surge both in India and on the international markets. As of October 8, 2025, the precious metal has crossed new price thresholds, reaching $4,000 per ounce for the first time in Asian markets. Experts believe that this upward trend in gold prices is driven by a combination of factors, including global uncertainty and expectations of Federal Reserve rate cuts. In India, the price of gold has also risen significantly, with future contracts on the Multi Commodity Exchange (MCX) reflecting the bullish trend.
Rising Gold Prices in India and International Markets
On October 8, 2025, gold futures on the MCX in India saw a rise of ₹806, trading at ₹121,055 per 10 grams for December delivery. The silver futures market, however, showed a slight decline, with silver trading at ₹145,410 per kilogram, reflecting a drop of ₹2,109. This indicates a divergence in the performance of precious metals, where gold continues to show strong growth while silver weakens.
Meanwhile, on the global front, gold futures have also surged, closing at $4,004.4 per ounce for December delivery. This represents an increase of 0.7%, and during the day, prices even touched a high of $4,014.6 per ounce. Spot gold prices also saw an increase, rising by 0.6% to settle at $3,985.82 per ounce. This rise marks a significant achievement for gold, as it continues to break previous all-time highs.
In contrast, silver has not been able to match gold’s performance, with spot silver falling by 1.4% to $47.86 per ounce. This highlights the increasing dominance of gold in the precious metals market.
Why Is Gold Getting Expensive?
There are several factors contributing to the continuous rise in gold prices.
-
Expectation of Federal Reserve Rate Cuts: Traders are anticipating a rate cut of 45 basis points by the Federal Reserve this year. This expectation has driven investors towards gold as a safe haven.
-
Desire for Safe-Haven Investment: With global uncertainty such as the U.S. government shutdown and political unrest in France, investors are flocking to gold as a secure investment option.
-
Weakening Dollar: A softening dollar index has further contributed to the rising global price of gold. As the value of the dollar weakens, gold becomes more attractive for investors looking to hedge against inflation and currency devaluation.
-
Central Bank Purchases: Countries, including China, continue to increase their gold reserves. Central banks’ increasing demand for gold has also driven prices higher.
-
ETF Inflows: There has been a notable increase in investments in gold-backed exchange-traded funds (ETFs), further supporting the demand for gold.
Gold Prices Surge 52% in 2025, With Experts Seeing Continued Growth
Gold prices have risen by 52% since the beginning of the year 2025, reflecting an ongoing upward trend. Last year, in 2024, the prices saw an increase of 27%. The continuous rise in gold prices has led to a “Fear of Missing Out” (FOMO) situation, with many investors rushing to buy gold for fear that the prices will continue to climb.
This behavior is further driving the rally in gold prices, as investors perceive gold as a valuable asset during times of economic uncertainty. Experts believe that this momentum is likely to continue for the foreseeable future.
Expert Opinions on Rising Gold Prices
UBS analyst Giovanni Stonovo commented that people are still purchasing gold despite its high prices. According to Stonovo, this ongoing buying spree is fueling the rally further.
Peter Grant, an analyst at Zaner Metals, stated that the safe-haven flow is continuously ongoing, driven by the U.S. government shutdown and the increasing global uncertainty. This consistent demand for gold as a protective asset is one of the key reasons why gold remains a popular investment choice.
Goldman Sachs Raises Price Forecast for Gold
Goldman Sachs has also revised its gold price forecast for December 2026, increasing it to $4,900 per ounce from its previous forecast of $4,300. The investment bank cited ETF inflows and central bank purchases as primary drivers for this upward revision. This suggests that in the coming months, gold prices could continue to rise, especially as demand for the metal remains strong from institutional investors and central banks alike.
Future Outlook for Gold Prices
Looking ahead, experts believe that gold may continue to perform well in the short to medium term, supported by a combination of factors such as ongoing global uncertainties, the potential for further Federal Reserve rate cuts, and central bank purchases. As gold continues to prove itself as a reliable store of value, its role in investment portfolios is expected to increase, particularly during times of economic volatility.
Gold and Silver: Diverging Trends in Precious Metals
While gold is experiencing unprecedented growth, silver’s performance is lagging behind. The disparity between gold and silver highlights the strong demand for gold as a safe-haven asset, whereas silver has not garnered the same level of investor interest. Silver’s price fluctuations are generally more volatile compared to gold, and the current market environment has favored gold over silver.
The global economy’s reliance on gold as a hedge against inflation and economic uncertainty has significantly contributed to the metal’s price growth. As geopolitical risks and financial crises continue to unfold, gold’s position as the go-to safe-haven investment is likely to remain strong.
The rise in gold prices in 2025 reflects the growing importance of the precious metal in the global financial market. Driven by global uncertainty, expectations of rate cuts, and increasing demand from central banks and ETFs, gold prices have reached new heights. As investors continue to flock to gold as a secure investment, the metal’s role in the global economy remains critical.
For Indian investors, the price surge in gold, as reflected in MCX futures, presents both challenges and opportunities. Those who have already invested in gold are seeing significant returns, while others may feel compelled to buy in anticipation of further price increases. However, it is important for investors to stay informed about the global and domestic factors affecting gold prices, as these will likely continue to influence market trends in the coming months.
Gold’s ongoing rise suggests that the metal will remain a central asset for investors looking to safeguard their wealth in times of uncertainty. With experts forecasting further increases in gold prices, this precious metal is likely to remain a safe haven for investors worldwide.
