Gold prices have surged past $4,000 an ounce for the first time, extending their two-year rally amid global uncertainty, strong central bank demand, and a weakening dollar.
Why Is Gold Defying Gravity Even After Crossing $4,000 an Ounce?
About the Global Gold Rally
Gold’s relentless ascent continues as it tops $4,000 an ounce in Asian trade, with December COMEX futures ruling around $4,065.90. Silver too touched a 14-year high at $49 an ounce. In India, gold (999 fineness) was quoted at ₹1,21,210 per 10g in Mumbai, while silver surged beyond ₹1,52,000 per kg in Ahmedabad.
What Is Driving This Extraordinary Surge?
Analysts attribute the ongoing rally to a combination of central bank accumulation, persistent inflation fears, a weakening dollar, and investor demand for safe-haven assets. The World Gold Council noted that trade tensions, employment concerns, and fiscal frictions in the US have further boosted investor interest in gold.
Goldman Sachs has raised its December 2026 forecast from $4,300 to $4,900 per ounce, citing continued momentum from central bank buying and ETF inflows. Meanwhile, ING’s financial research division highlighted that the People’s Bank of China has been consistently purchasing gold for 11 straight months, despite soaring prices.
Industry experts such as Amaren Vummidi of Vummidi Bangaru Jewellers believe the rally “has more steam to rise further.” Renisha Chainani of Augmont sees potential upward spikes toward $4,150 or ₹1,25,000 per 10g, signaling that precious metals could maintain their bullish tone in the near term.
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How the Indian Market Is Reacting
MCX data shows December gold futures rising to ₹1,22,920 per 10g and silver futures to ₹1,48,603 per kg. Physical market demand has remained strong in major metros despite high prices, partly fueled by festive-season buying and currency hedging needs.
The World Gold Council’s data shows that gold has delivered over 46% year-to-date returns, while silver is up more than 51% — outperforming most asset classes. These gains reflect strong global liquidity inflows and sustained investor sentiment favoring tangible assets over volatile equities.
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Investor Takeaway
Indian-Share-Tips.com Main Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that the two-year rally in precious metals signals both fear and opportunity. “Gold’s behavior mirrors investor psychology under policy and geopolitical stress — until inflation and global confidence stabilize, gold could retain its upper hand.”
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
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