Spot gold price hits record high, surpassing USD 4,060 per ounce.

Spot gold price hits record high, surpassing USD 4,060 per ounce.

The spot gold price has reached a new record high, surpassing USD 4,060 per ounce. This significant milestone marks the latest in a series of upward trends that have characterized the precious metal's performance this year. According to LiveMint, gold prices have surged by approximately 2.9% for the week, reaching a new high of ₹1,23,677 per 10 grams in the domestic market .

The rally in gold prices is being fueled by a combination of macroeconomic factors, including the ongoing US-China tariff war, central bank diversification away from the US dollar, monetary easing by the US Federal Reserve, geopolitical instability, and the prolonged US government shutdown. Central banks, particularly in emerging economies, have been aggressively accumulating gold, further bolstering its status as an anti-dollar reserve asset in a world increasingly defined by trade fragmentation and de-dollarisation .

The latest upward move in gold prices was driven by renewed expectations of a US Federal Reserve rate cut at its upcoming October meeting, following dovish tones in the minutes of the previous FOMC meeting. This scenario typically boosts demand for non-yielding assets like gold .

The US government shutdown, now in its second week, has added to global economic unease, with estimates suggesting that the US economy is losing nearly $7 billion per week in output. This policy paralysis has heightened fears of a broader slowdown, amplifying safe-haven demand for gold .

Fresh concerns emerged after President Trump threatened to impose 100% tariffs on Chinese imports, accusing Beijing of pursuing monopolistic control of rare earths. This has reignited fears of another US-China trade war, a scenario that historically drives capital into safe-haven assets .

Investor appetite has surged across physical and financial channels. Indian gold ETFs recorded inflows of $902 million in September, marking a 285% jump over August, with total holdings rising to a record 77.3 tons . Global physically backed gold ETFs recorded their most significant monthly inflow in September, resulting in the strongest quarter on record of US$26bn .

Technically, gold prices could experience further upside, but signs of near-term exhaustion are emerging, especially if the dollar strengthens further. Resistance for gold is expected near $4,120 to $4,150 per ounce and in the ₹1,25,000 to ₹1,27,000 per 10 gm zone, while support is placed near $3,940 per ounce globally and ₹1,19,800 per 10 gms .

Gold price outlook
From a technical standpoint, gold prices still have room for further upside, although signs of near-term exhaustion are beginning to emerge, particularly if the US dollar continues to strengthen. The metal could experience phases of consolidation or corrective pullbacks should the dollar index sustain above the 100 mark, as a firmer greenback typically caps gains in precious metals .

An interesting technical milestone worth highlighting is that gold has now logged nine consecutive quarterly gains since the outbreak of the Israel-Hamas conflict in late 2023. However, as Israel’s government approves the first phase of a ceasefire with Hamas, paving the way for a potential cooling of regional tensions, the metal could see a short-term corrective phase as some of the geopolitical risk premium unwinds .

That said, a decisive break below the $3,940 level would be a key signal for a deeper retracement, while sustained trading above this zone should keep the broader bullish structure intact. Until then, gold continues to shine as the ultimate hedge in a world still grappling with policy uncertainty, trade disruptions, and shifting monetary alignments, reaffirming its status as the cornerstone of global financial stability .