Gold Price Today: Spot Yellow Metal Surges To Lifetime High, Breaches $4,000 Per Ounce Mark

Gold Price Today: Gold rates have seen a stellar rally in 2025. The rally has led to spot gold prices crossing the $4,000 per troy ounce mark in the early hours of October 8, 2025. At the time of writing, spot gold prices were trading at $4,029.76, up by $49.36 or 1.24 per cent.

The surge in spot gold price was driven by an increase in the demand for safe haven assets amid heightened economic and political tensions.

So far, spot gold has given returns of 53.57 per cent in 2025. This stellar rally has followed the geopolitical and economic turbulence in 2025. Closer home, the demand for the yellow metal is being buoyed by a shift in investor sentiment towards safety, strong spot demand and other bullish cues leading to the MCX Gold December futures hitting a lifetime high at Rs 1,22,384 per 10 gram.

At the time of writing, gold futures with December 5 expiry were trading at Rs 1,22,383 per 10 gram, up by Rs 1,272 or 1.05 per cent.

On the other hand, MCX Silver December futures surged to a lifetime high of Rs 1,48,724 per kilogram on October 8.

At the time of writing, MCX Silver December futures were trading at Rs 1,48,100 per kilogram, up by Rs 2,308 or 1.58 per cent.

Why Are Gold and Silver Prices Rallying

The demand for safe haven assets is driving the rally in gold and silver prices. The ongoing tensions between Russia and Ukraine, along with several other conflicts has led to an increase in uncertainty, making investors flocking to safe haven assets.

Safe Haven Asset Demand

Safe haven assets, such as gold and silver tend to hold their value and resist price changes during periods of high volatility. Notably, the India VIX index, which measures the expected volatility and market uncertainty of the Nifty 50, is trading in the green, indicating a high degree of volatility in upcoming sessions. This upcoming volatility follows a slew of political developments across the globe, such as instability in France, concerns regarding the US government shutdown and policy changes following the election of Japan’s new prime minister.

Speculation Regarding US-Fed Rate Cut

On the other hand, rising speculation regarding potential interest rate cuts by the US Federal Reserve also makes gold and silver more attractive to investors. The speculations have led to the weakening of the dollar, which in turn has also spurred demand for the yellow metal.

Central Banks Accumulating Gold

The demand for the yellow metal is also being supported by strong buying activity by global central banks, such as the People’s Bank of China which has consistently been accumulating gold in 2025. Gold holdings by China’s central bank stood at 74.06 million fine troy ounces at the end of September, increasing from 74.02 million in August according to data from the People’s Bank of China. Notably, this buying spree by the bank comes amid a global trend of central banks bolstering their gold reserves to protect against economic shocks.

Festive Demand and ETF Inflows

Domestic factors, such as robust festive demand for gold are also driving up prices along with significant inflows into gold exchange-traded funds (ETFs). According to data by the World Gold Council cited by news agency Reuters, the global demand for the yellow metal reached life-time highs in 2025. The report also stated that inflows into physically-backed ETFs surged to $64 billion, of which nearly $17.3 billion inflow was added in September 2025.

Santosh Meena, Head of Research at Swastika Investmart told Outlook Money that the overall outlook for gold remains bullish. However, he cautioned against the risk of profit booking.

"The overall outlook for gold remains bullish; however, there is a risk of profit booking in the near term as the metal is currently in an extremely overbought zone," Meena said.

Meena advised existing investors to consider booking profits partially on their long-positions. He added that the profit-booking can be done with a trailing stop-loss of Rs 1.2 lakh per 10 gram level for gold.

"Predicting the exact level of profit booking is challenging. Since positions on gold in the MCX are leveraged, the risk remains elevated. Traders may consider booking partial profits on their long positions while trailing the stop loss for the remaining holdings around Rs 1,20,000," Meena said.

Meena added that while there are no present buying opportunities amid the rise in gold prices, investors can consider re-entry around the Rs 1.15 lakh per 10 gram level.

"Any sharp correction towards the Rs 1,15,000 level could provide an excellent re-entry opportunity," Meena said.