First Time Ever Gold Prices Hit Record $4,000 Mark:13 New Highs Touched in September: Will the Rally Continue?

Bullion investors are on cloud nine as gold prices surge to unprecedented levels, breaching the $4,000 per ounce mark for the first time in history. According to the World Gold Council, yellow metal has been on a record-breaking spree, touching 13 new all-time highs in September 2025 alone, and the rally shows no signs of slowing down this October.

Gold Prices at Record Highs Globally

As of early Asian trading on Wednesday, spot gold soared above $4,000 per ounce, briefly touching $4,027.22, up 1.18% at the time of writing. Interestingly, the U.S. Dollar Index is currently recovering from its monthly lows despite gold's rise.
The World Gold Council in its report said that "October is known for large equity sell-offs, and risks are riding quite high. Gold is generally a good hedge, but there may be concerns about its ability to respond given how stretched it looks. In addition, a very oversold US dollar continues to pose a threat to gold, should a squeeze materialise. However, our analysis suggests that these concerns are not warranted and that, absent a liquidity crunch, gold's hedging credentials remain intact."

The WGC also revealed that investors have poured a record $64 billion into gold ETFs so far this year.

Global Triggers Behind Gold's Unstoppable Rally

Gold's meteoric rise has been because of multiple reasons, including the US government shutdown, which is now stretching into its second week; it has deprived investors of major economic data, making gold a preferred hedge.

The dovish US Fed policy outlook is another major factor, as the traders are pricing in a 25 basis point rate cut in October and December, further enhancing gold's attractiveness as a non-yielding asset.

Gold Prices in India Surge Ahead of Festive Season

Back home, gold prices in India have mirrored global trends, extending their rally as festive demand peaks ahead of Dhanteras and Diwali.

The domestic market has witnessed heavy buying activity, especially in the retail segment, as consumers rush to purchase the precious metal amid fears of further price hikes. The 24-karat gold rate per 10 grams is currently Rs. 123,930, up by Rs. 1,910. While the 22-karat gold rate per 10 grams stood today at Rs. 113,600, up by Rs. 1,750. Experts believe demand could rise even further during Diwali, potentially pushing gold to new lifetime highs in the domestic market as well.

Will the Gold Rally Continue?

Analysts remain cautiously optimistic. While the current momentum is strong, some believe that an overbought U.S. dollar and potential liquidity crunch could trigger short-term corrections.

"Spot gold is likely to trade higher amid tariff concerns and uncertainty over the U.S. government shutdown. Further, an increase in the prospects of a lower interest rate would push prices higher. Furthermore, strong ETF inflows would also support prices. In September, global ETF inflows stood at $17.3 billion. In this year, Indian gold ETF inflows almost doubled to $2.18 billion compared to $1.29 billion in 2024, according to a Commodity Report by ICICI Securities.

"Meanwhile, most of the economic data releases from the US will be delayed, and investors will keep an eye on comments from the Fed members and FOMC meeting minutes to get more clarity on the quantum of rate cuts this year. Spot gold is hovering near $4000 per ounce. Above $4000 per ounce, it would open the doors towards $4100," the report further stated.

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