Gold prices in India increased on Wednesday. According to FXStreet, the price is now at 11,657.22 Indian Rupees (INR) per gram, up from 11,634.65 INR the day before. The price for a tola also rose to 135,967.50 INR, up from 135,704.30 INR. For 10 grams, the price is 116,572.40 INR, and a troy ounce costs 362,583.80 INR. These prices adjust daily based on international rates and local currency. The US government shutdown is now in its fourth week because the Senate could not approve funding. President Donald Trump threatened tariffs on China but later indicated he is open to better relations, hinting at a potential trade deal with President Xi Jinping. US Treasury Secretary Scott Bessent is set to talk about reducing trade tensions with China before talks begin. Additionally, traders are anticipating a nearly 99% chance of an interest rate cut by the US central bank next week.

Gold’s Stability In Uncertainty

Gold is known for its stability, making it a popular investment during uncertain times. Central banks are buying more gold, especially in China, India, and Turkey. Prices can be influenced by geopolitical events, interest rates, and the US Dollar. Usually, a weaker dollar leads to higher gold prices. Currently, gold prices are increasing due to a recent decline in the US dollar. Gold is testing key resistance levels not seen since early this year, with the US Dollar Index (DXY) dropping 2% to 103.5 over the last month. This trend shows gold’s historical pattern of rising when the dollar weakens. The market is closely watching the Federal Reserve’s next move, especially after the latest inflation data for September 2025 showed a slight decrease. According to the CME FedWatch Tool, there’s a 65% chance of a rate cut in the first quarter of 2026, making gold, which does not yield interest, more appealing. This situation is reminiscent of past cycles where expectations of lower rates led to significant price increases in gold.

Central Banks And Demand

Geopolitical tensions are also boosting gold as a safe-haven investment. We are keeping an eye on ongoing supply chain issues in Southeast Asia, which are creating uncertainty in stock markets. This is similar to the volatility during past US-China trade disputes, pushing investors toward the safety of gold. Additionally, consistent demand from central banks supports the price. Following a record purchase year in 2022, the World Gold Council’s latest report for Q3 2025 showed that central banks added 280 tonnes to their reserves. This ongoing buying signals long-term confidence in gold. Given these positive factors, we might consider preparing for potential gains in the coming weeks. Buying call options on gold futures or exchange-traded funds can directly benefit from price increases. Traders should watch for prices breaking above recent highs as a sign of a new upward trend. Create your live VT Markets account and start trading now.

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