Gold price today: While the stock market is continuously eating hiccups, the price of gold is breaking all the old records. On Tuesday, September 30, gold jumped 1.21% on MCX to a new record of Rs 1,16,850 per 10 grams. At the same time, December delivery gold futures in the international market rose 1.14% to an all -time high level of $ 3,899.15 an ounce.
The latest report of the National Stock Exchange states that gold has become 37% in the last 12 months and 31% expensive so far this year. If compared to the Nifty 50 index, it has given a negative return of 4.65% in the last 12 months. At the same time, Nifty has increased by just 3.66% this year. Let us know what are 5 major reasons, which are taking every gold price to a new height.
Weakness of rupee and impact of festivals
The weakness of the Indian rupee has made the imported gold more expensive. On the other hand, the season of festivals and weddings has started in the country. The demand for gold on festivals like Dussehra and Diwali is always at its peak.
Jewelers say that the demand for Heritage and Handcrafted jewelery is increasing. Buyers are not backing due to the cultural and emotional importance of gold despite the record prices.
Conflict in American politics, fear of shutdown
The apprehension of the shutdown of the US government has given a new height to gold prices. According to reports, there is no agreement between President Donald Trump and Democrats. This can stop many government services from Wednesday itself.
Now investors are waiting for American Job Openings, Private Panels, ISM Manufacturing PMI and the non-form payroll report on Friday, so that the health of the economy can be further indicated.
Send of safe investment with geopolitical stress
Russia-Ukraine War, Israel-Hamas Conflict and America-related business tension have volatile investment environment. In such a situation, gold has always been considered a safe investment. In India too, investors have purchased fierce gold despite high prices, as it is considered a symbol of security and stability.
Now many people are buying more gold for jewelry, more as investment. This trend has increased all over the world including India. Sluggish in the stock market has also pushed Indian investors towards gold.
Heavy shopping of central banks including RBI
The major reason for the gold rally is the continuous purchase of central banks around the world. Many countries in Asia, Middle East and Europe are increasing gold stock to avoid currency fluctuations and dollar weakness. The Reserve Bank of India (RBI) is also adding gold to its reserve.
According to the World Gold Council, in May 2025, central banks bought 20 tonnes of gold, which was more than last month. More than 1,000 tonnes of gold was purchased every year in the last three years, while in the last decade it used to be 400–500 tonnes on an average.
Increased investment in gold ETF
Globally investors are investing money in gold-backed ETFs, which relieves the concern of having physical gold. Meanwhile, holdings of the world’s largest gold-backed ETF SPDR Gold Trust rose 0.60% to 1,011.73 MT on Monday, reaching the highest since July 2022.
Also, the US and other developed countries are likely to remain lower interest rates for a long time. This has made assets without interest like gold even more attractive.
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