Gold Prices Hit Record Highs in India on October 16 Amid Geopolitical Tension

Gold prices surged sharply on Thursday, October 16, with MCX gold futures reaching an all-time high of ₹1.28 lakh per 10 grams. This historic rally is being driven by rising geopolitical tensions, concerns over the U.S. economy, and increasing speculation around further monetary easing by global central banks.

On the international stage, spot gold climbed 0.6% to $4,233.06 per ounce, hitting an intraday peak of $4,241.77. Meanwhile, U.S. gold futures for December delivery jumped 1.1% to $4,246.60 per ounce, continuing their upward trajectory amid mounting global uncertainties.

Geopolitical and Economic Pressures Fuel Demand

The market experts pointed to a combination of factors behind the rally. The top of among them are intensifying U.S.-China trade tensions, including new restrictions on rare-earth exports and retaliatory port fees. Additionally, fears of a potential U.S. federal government shutdown have added to the market’s nervousness, pushing investors toward safe-haven assets like gold.

Also Read: Why Gold Prices Continue to Surge: Check Key Reasons

Investor Sentiment Remains Bullish

Investor appetite for gold continues to grow. Holdings in the SPDR Gold Trust—the world's largest gold-backed exchange-traded fund, climbed to 1,022.60 tonnes, the highest since July 2022. Further reinforcing the bullish sentiment, a World Gold Council survey found that 95% of central banks intend to increase their gold reserves over the next year.

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