Gold falls from all-time high, outlook remains firm

Gold prices retreated on Thursday (October 9) after hitting all-time highs, as traders locked in gains following a powerful rally driven by global economic uncertainty and expectations of U.S. rate cuts.

Spot gold fell 0.4% to $4,020.99 an ounce at 0302 GMT, down from Wednesday’s (October 8) record high of $4,059.05 an ounce.

U.S. gold futures slipped 0.7% to $4,040.70 an ounce.

In India, prices stood at ₹12,415 per gram for 24-karat gold, ₹11,380 for 22-karat gold and ₹9,311 for 18-karat gold, according to Goodreturns.

Profit-taking after record rally

The pullback follows a four-day surge that took gold above the $4,000 an ounce mark for the first time, supported by lingering inflation concerns and demand for safe assets.

Signs of a potential ceasefire between Israel and Hamas, as well as overbought market conditions, have prompted short-term profit-taking.

“The first step toward a Middle East peace deal has dampened demand for safe-haven assets, but the recent rally has also made gold technically overbought,” said Darshan Desai, CEO of Aspect Bullion & Refinery. “Any correction could provide a buying opportunity given current geopolitical and economic risks.”

Fed Expectations Support Bullion

Minutes from the Federal Reserve’s September meeting showed policymakers were leaning toward rate cuts amid slowing job growth, even if inflation remains above target.

Markets now expect two quarter-point cuts, one in October and another in December, according to CME FedWatch data.

Lower interest rates tend to push gold higher by reducing the attractiveness of interest-bearing assets.

Broader market context

Investors have sought refuge in precious metals amid a volatile global environment: political unrest in major economies, continued U.S. government shutdowns and weakness in the foreign exchange market.

Rahul Kalantri, Vice President – ​​Commodities at Mehta Equities, said gold remains supported by strong demand from central banks and strong ETF inflows.

“Even with intermittent profit-taking, the long-term momentum remains positive,” he added.

He placed gold support at $3,980 to $3,940 per ounce and resistance at $4,055 to $4,085 per ounce, in rupee terms.

The best performing asset of 2025

Gold has gained more than 55% in 2025, outperforming stocks and most commodities.

“Crossing ₹1.20 lakh for 10 grams marks a psychological milestone,” said Inderbir Singh Jolly, CEO – Wealth and Asset Management at PL Capital. “This rally reflects deep structural uncertainty and signals the need for measured portfolio exposure,” he said.

Investment view

Analysts expect short-term volatility but maintain a positive medium-term outlook. With diversification of central bank reserves, increased ETF holdings and policy easing on the horizon, gold remains a preferred hedge against inflation and market instability.