Gold prices have been on a strong upward trajectory in both domestic and international markets, and the recent US Federal Reserve rate cut has only intensified the debate on where the yellow metal is headed next. Despite experiencing a brief correction during the week, gold prices closed on a positive note, marking the fifth consecutive week of gains.
On the Multi Commodity Exchange (MCX), October 2025 gold futures ended last Friday at ₹1,09,900 per 10 grams, setting a new benchmark for domestic traders. Internationally, COMEX gold touched a record $3,707.65 per troy ounce, underscoring the strength of global demand and investor appetite for the precious metal.
Fed Rate Cut Impact on Gold Prices
The US Federal Reserve’s rate cut has created ripples across global markets. Typically, lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making the metal more attractive to investors. Analysts suggest that the Fed’s latest move signals a prolonged period of monetary easing, which could continue to fuel gold’s bullish momentum.
“Gold is clearly benefiting from the Fed’s dovish stance. With inflationary concerns still present and global economic growth slowing, investors are increasingly turning to gold as a safe-haven asset,” said a commodities analyst at a leading brokerage firm.
MCX Gold Price in India: October 2025 Futures Cross ₹1.09 Lakh
In India, gold has seen a remarkable rally over the past few months, supported by global trends, a weaker rupee, and festive-season demand. The MCX October 2025 contract breaching ₹1.09 lakh per 10 grams is a historic milestone, reflecting both international market strength and local dynamics.
Traders point out that while short-term corrections are inevitable after such a sharp rally, the overall sentiment remains bullish. “Any dips in gold are being quickly bought into, showing that investor confidence is firmly in place,” said a bullion trader from Delhi’s Chandni Chowk market.
COMEX Gold Outlook: Record High Above $3,700
On the global front, COMEX gold surging past $3,700 per troy ounce is a clear indicator of sustained demand. The rally is being driven not just by monetary policy shifts, but also by geopolitical tensions, a weaker US dollar, and central bank gold buying.
Central banks, particularly in emerging economies, have been increasing their gold holdings as part of their reserve diversification strategy. This structural demand is providing a strong base for long-term price stability.
Key Factors Driving Gold Rates in 2025
Several factors are currently shaping the trajectory of gold prices:
- US Federal Reserve Policy – The rate cut reinforces expectations of prolonged low interest rates.
- Dollar Weakness – A softer dollar makes gold cheaper for non-US investors.
- Geopolitical Concerns – Rising tensions in Europe and the Middle East are boosting safe-haven demand.
- Central Bank Buying – Consistent buying is adding to global demand.
- Festive and Wedding Season Demand in India – Seasonal demand supports domestic gold prices.
Gold Price Forecast: Will the Rally Continue?
Analysts are divided on the near-term outlook. While some suggest that gold may have run ahead of fundamentals, others argue that structural support factors remain strong.
- On MCX, gold may face resistance near ₹1.12 lakh per 10 grams.
- On COMEX, the next key barrier is $3,750 per troy ounce.
If these levels are breached, prices could move significantly higher. However, profit-booking and dollar recovery could trigger short-term pullbacks.
Investment Outlook: Should You Buy Gold Now?
For retail investors, the current market presents both opportunities and risks. Experts recommend a cautious, staggered approach to gold investment rather than aggressive buying at record levels.
“Investors should treat gold as a portfolio diversifier and inflation hedge. Entering gradually through gold ETFs, sovereign gold bonds, or systematic gold plans can help balance risks,” advised a financial planner.
Conclusion: Gold Continues to Shine in 2025
The US Fed’s rate cut has added fresh momentum to the gold rally, pushing prices to historic highs in India and globally. With COMEX gold at $3,707.65 per ounce and MCX futures at ₹1,09,900 per 10 grams, sentiment remains strong.
While short-term corrections are likely, the long-term gold price outlook for 2025 is supported by central bank demand, global uncertainties, and accommodative monetary policies. For investors, gold continues to remain one of the most attractive safe-haven assets in today’s uncertain financial landscape.
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