Gold Price Hits ₹1.08 Lakh per 10 Grams, Delivers 37% Returns in 2025 – Will the Rally Continue This Diwali?

New Delhi, September 8, 2025: Gold is once again stealing the spotlight. Prices of the precious metal have surged to an all-time high, crossing ₹1.08 lakh per 10 grams for 24-carat gold in India. So far in 2025, gold has delivered an impressive 37% return, making it one of the best-performing assets of the year. As Diwali approaches, investors are keenly watching whether gold can climb even higher.

Why Gold Is Rallying in 2025

The current rally is being driven by several global and domestic factors:

• Weak U.S. Jobs Data: In August, the U.S. economy added only 22,000 new jobs, far below the expected 75,000. Unemployment also rose to 4.3%, the highest in four years.

• Federal Reserve Rate Cut Hopes: With slowing growth, markets expect the U.S. Federal Reserve to cut rates by at least 25 basis points this month. Some analysts even suggest the possibility of a 50-point cut.

• Central Bank Purchases: Major central banks, particularly China’s, have been consistently buying gold. China has increased its gold reserves for the 10th consecutive month, boosting global demand.

• Geopolitical Uncertainty: Rising global tensions and a weaker U.S. dollar have also strengthened gold’s appeal as a safe-haven asset.

These factors together have pushed gold prices closer to record highs both internationally and in Indian markets.

Gold Prices in India on September 8

On Monday, September 8, domestic prices remained firm, reflecting global trends:

• 24 Carat Gold: ₹1,08,000 per 10 grams

• 22 Carat Gold: ₹99,350 per 10 grams

• 18 Carat Gold: ₹81,290 per 10 grams

This marks the highest-ever level for gold in India, and traders believe more momentum could follow as festival demand picks up.

Global Market Snapshot

In international markets, spot gold held steady at $3,586.81 per ounce, just below the all-time high of $3,599.89 reached on September 5. However, U.S. December gold futures slipped 0.7% to $3,626.10 per ounce.

Despite the slight dip in futures, the outlook remains bullish due to weak U.S. economic indicators and expectations of monetary easing.

Technical View: Support and Resistance Levels

Market experts suggest that gold prices in India currently have strong support at ₹1.06–₹1.07 lakh per 10 grams. On the upside, resistance is seen between ₹1.084 lakh and ₹1.089 lakh per 10 grams.

This means gold may face some profit-booking at higher levels, but the overall trend remains positive as long as global economic uncertainties persist.

Performance in Recent Years

Gold has consistently rewarded investors in recent years:

• In 2024, gold delivered a 27% annual return.

• In 2025 (year-to-date), returns have already touched 37%.

The rally has been supported by a weak dollar, ongoing central bank buying, and geopolitical risks. For many investors, gold has once again proven its value as a hedge against volatility.

Outlook: Will Gold Become More Expensive This Diwali?

All eyes are now on the U.S. inflation data due later this week. Analysts say these numbers will play a crucial role in deciding the next direction for gold prices:

• If inflation figures come in weaker than expected, markets will strengthen their bets on further rate cuts, which could push gold beyond $3,600 per ounce internationally.

• However, if inflation surprises on the upside, some profit-taking may occur, leading to short-term corrections in prices.

In India, festival demand, a weaker rupee, and ongoing global support factors are expected to keep gold prices elevated in the near term.