Gold Rate Today Rises Amid Festive Buying and Global Cues

Gold Rate Today Rises Amid Festive Buying and Global Cues

Gold prices in India rose on Monday, October 20, supported by expectations of U.S. interest rate cuts and global economic uncertainty. The uptick coincides with India’s festive season, traditionally a strong period for gold demand.

As of today, 24-karat gold is trading at ₹13,069 per gram, 22-karat gold at ₹11,980 per gram, and 18-karat gold (999 purity) at ₹9,802 per gram.

Globally, spot gold was up 0.1% at $4,253.33 per ounce, while U.S. gold futures for December delivery gained 1.3% to $4,266.30 per ounce.

Key Drivers Behind the Price Movement

Expectations of U.S. Rate Cuts

Markets are anticipating that the U.S. Federal Reserve could reduce interest rates, which is supporting global gold prices. Lower interest rates generally enhance the appeal of gold as a store of value.

Geopolitical and Economic Uncertainty

Concerns over global trade and economic stability continue to drive investor preference toward safe-haven assets like gold. This has added to upward momentum in both international and domestic markets.

Central Bank Purchases

Central banks across several economies have been steadily increasing their gold reserves, contributing to sustained demand and firm prices worldwide.

Festive Demand Boosts Domestic Buying

In India, the ongoing festive season has strengthened consumer demand for gold. Buyers are increasingly focusing on coins and bars, reflecting a gradual shift toward investment-led purchases over ornamental jewellery.

Seasonal buying, combined with supportive global trends, has helped maintain firm gold prices in the domestic market ahead of major festivals such as Dhanteras and Diwali.

Recent Market Performance

Gold has gained more than 60% year-to-date, touching an all-time high of $4,378.69 per ounce last week. The combination of potential U.S. rate cuts, steady central bank demand, and geopolitical tensions continues to influence the broader market trend.