Gold’s Rally Continues To Break Records: Check The Latest Rates Here

The massive rally in gold prices shows no signs of stopping as it continued on Thursday, 16th October 2025. The precious yellow metal has smashed through every ceiling in sight, creating a peak of $4,227 per ounce in international markets. In India, gold prices are hovering around ₹1,28,395 per 10 grams on the MCX (as of 16 October 2025) and are expected to cross the ₹1.3 lakh figure soon.

Every new trading day seems to bring another headline-grabbing milestone. From central banks hoarding bullion to retail buyers rushing to jewellers, gold’s rally has gone from impressive to almost unbelievable. What started as a quiet climb a few months ago has turned into a record-breaking rally, powered by global uncertainty, the promise of lower U.S. interest rates, and an unrelenting appetite for safe havens amid the escalating U.S.-China tensions.

What’s Fueling The Rally?

The following are the factors behind the massive gold rally:

• Fed Rate Cut Hopes & Lower Real Yields

The U.S. Federal Reserve is expected to start trimming rates soon. A major decision on this aspect is yet to be taken. With yields falling, investors are shifting away from bonds and parking funds in gold, which historically thrives in low-rate environments.

• Escalating US-China Tensions

The most obvious and primary reason is the US-China standoff. The latest salvo came from renewed tariff threats by the United States of America (USA) and export controls by China. While the US President, Mr Donald Trump, slapped a new 100% tariff on Chinese imports, Beijing, too, has warned of countermeasures against Washington.

• ETF and Central Bank’s De-dollarisation

Exchange-traded funds or Gold ETFs are witnessing strong inflows, while central banks, especially in Asia, continue to buy gold as part of their de-dollarisation efforts. These steady institutional purchases act like a floor under prices.

• US Shutdown and the Global Economic Unease

The ongoing US Government shutdown has stretched into its second week, creating an environment of global economic unease. As per the estimates, the US economy is currently losing around $7 billion in output each week, a figure that could surge to $15 billion if the impasse continues. This policy paralysis has intensified concerns over a potential broader economic slowdown, further boosting safe-haven demand for gold.

• Momentum traders jumping in

Once gold broke key resistance levels, momentum and algorithmic traders piled in, pushing prices higher in a self-reinforcing cycle. According to the World Gold Council, Indian gold ETFs recorded $902 million inflow in September, a leap of 285% over August, pushing aggregate holdings to 77.3 tonnes. The global sector also reported its strongest quarterly inflow ever (about US$26 billion).

Gold Prices In Major Indian Cities

With buyers gearing up for Dhanteras and Diwali, the biggest Indian festival, gold prices have become a major talking point. Here are the gold rates across all three categories in India (as of 16 October 2025):

Source - Goodreturns

The table below depicts the gold rates across all three categories in major Indian cities:

Source - Goodreturns

Gold futures for the October expiry surged to a new all-time high of ₹1,28,395 per 10 grams on the MCX on October 16. Similarly, futures contracts for February and April expiries also touched record highs of ₹1,29,368 and ₹1,30,839 per 10 grams, respectively.

The Way Ahead

The gold rally has legs in the near term, supported by ongoing geopolitical uncertainty, dovish rate expectations, and institutional demand. Some analysts are lifting gold targets closer to $4,900-per-ounce for 2026. But the sharper the rise, the more critical timing becomes. Experts suggest using dips to accumulate rather than chasing every spike, especially as volatility is likely to rise in the short term.

Sources:

Reuters CNN
Livemint
Goodreturns
Moneycontrol