Gold Prices: After a sharp rise in the price of gold for four consecutive days, a slight decline was seen today on October 9. Investors booked profits in gold, due to which its prices have now fallen below the all-time high. However, analysts say that the current decline is temporary and the trend of gold still remains strong in the medium term.
The spot price of gold in the international market fell 0.4% on Thursday to $ 4,020.99 an ounce. Just a day earlier it had touched an all-time high of $ 4,059.05 an ounce. At the same time, American gold futures prices fell 0.7% and were trading at $ 4,040.70 an ounce.
Meanwhile, gold prices in India remained almost stable on Thursday. In morning trade, the price of 24 carat gold was Rs 12,415 per gram, the price of 22 carat gold was Rs 11,380 and the price of 18 carat gold was Rs 9,311 per gram.
decline due to profit booking
Before this, there was a strong rise in the price of gold for the last 4 days. Due to this rise, the price of gold crossed $ 4,000 per ounce for the first time. The rally was driven by rising inflation, geopolitical tensions and demand for safe investments. However, investors booked profits on Thursday due to news of a possible ceasefire in the Israel-Hamas conflict and its move into the overbought zone on the technical charts.
Darshan Desai, CEO of Aspect Bullion & Refinery, said, “The start of peace talks in the Middle East has reduced the demand for safe haven investments. But the current recovery can be considered a buying opportunity. Geopolitical tensions and economic risks still remain.”
Federal Reserve expected to cut rates
The minutes of the September meeting of the US Federal Reserve have indicated that the central bank is now showing inclination towards cutting interest rates. Although inflation is still above the central bank’s target, a slowdown in the job market could prompt them to cut interest rates. The stock market is now expecting interest rates to be cut by 0.25-0.25% twice in October and December. Generally, demand for gold for investment increases as interest rates fall.
Demand increased due to global uncertainty
Amidst political instability, ongoing government shutdown in America and currency market weakness, investors have adopted gold as a safe option.
Rahul Kalantri, Vice President (Commodities), Mehta Equities, said, “Gold remains supported by strong buying by central banks and ETF inflows. We may see intermittent profit booking, but the long-term momentum is positive.” He said that the support level of gold will be between $3,980–$3,940 per ounce and the resistance level will be between $4,055–$4,085 per ounce.
Best performing asset of 2025
So far this year, gold has seen a tremendous rise of 55%, which is much better than the stock market and other commodities. PL Capital CEO Inderbir Singh Jolly said, “Gold crossing the ₹1.20 lakh per 10 gram level is a psychological milestone. This rally reflects global economic uncertainty and investor caution.”
investment perspective
Analysts believe that short-term volatility may continue, but the outlook for gold in the medium and long term still remains positive. Factors such as purchases of gold by central banks, increasing investment in gold ETFs and possible easing of monetary policy combine to make gold an attractive hedge asset.
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