Gold Rate In India Explodes To New Highs! Is Price Correction Coming After Monday's BIG Jump? 7 Oct Outlook

Gold Rate in India, Outlook: The ongoing global turmoil driven by geopolitical conflicts, a weakening US dollar, and persistent trade uncertainties has fueled yet another remarkable rally in gold prices. On Monday, October 6, gold in India soared to a new record high, extending its historic upward run. The key question now is, will the precious metal sustain its new peak, or are we headed for a price correction today, Tuesday, October 7?

Just like gold, silver rate in India also jumped on Monday and inched closer to its record high mark. The surge in precious metals valuation align with growing tensions around continued US shutdown. Meanwhile, US President Donald Trump's efforts to push a peace plan to end the two-year long war between Israel and Gaza couldn't boost investors' sentiment.

Gold Rate in India

The price of gold witnessed a sharp uptick on Monday, October 6. The 24 karat gold rate in India surged by Rs 137 to Rs 12,077 per gram. Likewise, the price of 22 karat gold rate in India jumped by Rs 125 to Rs 11,070 per gram. The price of 18 karat gold in India increased by Rs 103 to Rs 9,058 per gram.

The price of gold in India has increased by nearly 50% since the beginning of the year 2025 amid rising geopolitical tensions and stock market volatility.

Silver Rate In India

The price of silver in India also increased on Monday, October 6. Silver rate in India increased to Rs 156 per gram and Rs 1,56,000 per kilogram. Silver prices surge in India mirrors its surge in valuations worldwide due to strong industrial demand.

Gold, Silver Price Outlook

Gold rate in India surged past $3,900 level for the first time ever on Monday. The gold price rally was driven by safe-haven demand following political unrest in Japan, a continued US government shutdown and growing expectations of US Federal Reserve rate cuts, noted Manav Modi, Analyst - Precious Metal Research, Motilal Oswal Financial Services Ltd.

"Bullion has climbed by more than 45% so far in 2025 after a 27% rise in 2024, helped by strong central bank buying, increased demand for gold-backed exchange-traded funds, a weaker dollar and growing interest from retail investors seeking a hedge amid rising trade and geopolitical tensions," stated Modi.

Amid the US shutdown, updates related FOMC meeting minutes, Fed chair's speech, China's re-opening after the holiday and updates regarding the US shutdown are likely to impact gold price movement.

"Although gold is still in an overbought state and has broken significant resistance levels, short-term corrections will only be the result of profit-taking and not a fundamental reversal," noted Ross Maxwell, Global Strategy Lead at VT Markets.

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