Gold set a new record high on October 15. In the international market, spot gold price rose 1.4 percent to $ 4,200.11 an ounce. For the first time, gold crossed the psychological level of $ 4,200 an ounce in the international market. Here, a tremendous rise was also seen in gold futures in India. Gold futures on commodity exchange MCX rose by Rs 1,474, or 1.17 per cent, to Rs 1,27,730 per 10 grams at 2:15 pm.
Diwali And Dhanteras before Gold This rise has surprised people. Such a rise in gold prices would hardly have happened before during the festive season. Gold has given more than 55 percent returns to investors in 2025. Experts believe that the outlook for gold is strong. This means that the rising trend in gold prices may continue.
Experts say that there are 5 big reasons for the stormy rise in gold.,
1. More interest from investors in Gold ETF
Investor interest in gold ETFs has increased worldwide. According to data from ICRA Analytics, investment in gold ETFs increased by 578 percent to Rs 8,363.13 crore in September 2025 compared to a year ago. In September last year, Rs 1,232.99 crore was invested in Gold ETFs. The CAGR of investment in gold ETFs in the last five years has been 69 percent.
2. Increasing investment in gold by central banks of many countries
Central banks of many countries are increasing investment in gold. Seven countries increased investment in gold in August. These include the National Bank of Kazakhstan, Bulgarian National Bank, Central Bank of Turkey and People’s Bank of China. National Bank of Poland has purchased the maximum amount of gold. Experts say that the continuous buying of gold by many countries of the world is supporting its prices.
3. Effect of geopolitical tension
The fighting between Israel and Hamas may have stopped, but the war between Russia and Ukraine continues. Experts say that geopolitical tension has affected gold prices this year. Investors are buying gold for safe investment in view of global uncertainty. Gold is considered the safest investment option worldwide. Whenever there is a situation of turmoil in the world, the shine of gold increases.
4. Expectation of interest rate decline in America
Gold prices are also getting support from the expectation of interest rate reduction in America. It is estimated that America’s central bank, the Federal Reserve, may reduce interest rates twice this year. The first reduction he can make is this month. He can reduce the interest rate by 25 basis points. For the second time, it is expected to reduce the interest rate by 25 basis points in December. Decrease in interest rates affects the dollar. Gold shines when the dollar weakens.
5. Festive demand
In India, buying gold is considered auspicious on festivals, especially Dhanteras and Diwali. It is believed that buying gold on both these occasions brings happiness, peace and prosperity to the house. This time Dhanteras is on 18th November and Diwali is on 20th November. Jewelers are increasing stocks on both these occasions in anticipation of good demand for gold. This is also affecting the prices of gold. India imports more than 80 percent of its gold requirement.