Gold prices have reached unprecedented levels across Kerala, India, and global markets, driven by safe-haven demand, economic uncertainty, and expectations of U.S. Federal Reserve interest rate cuts.

In Kerala, the price of 22-carat gold hit a record ₹11,185 per gram, reflecting a sharp rise over the past week. This surge has made gold purchases increasingly expensive for local buyers, with demand remaining strong despite high prices.

Across India, gold prices have also soared, with 24-carat gold trading at ₹12,202 per gram and 22-carat gold at ₹11,185 per gram. The nationwide upward trend has been fueled by a combination of domestic demand, central bank buying, and a weakening rupee.

Globally, gold nearly touched $4,000 per ounce, with spot gold trading at $3,974.85 on October 7. U.S. gold futures rose to $3,996.40 per ounce, driven by geopolitical tensions, the ongoing U.S. government shutdown, and strong bets on Federal Reserve interest rate cuts later this year. Analysts estimate a 98% probability of a 25-basis-point rate cut in October and a 90% chance of another reduction in December.

Other precious metals also saw gains, with silver steady at $48.52, platinum rising to $1,626.55, and palladium climbing to $1,330.91. Central banks, including China’s, continued their gold purchases, further supporting the market.

Investor interest in gold-related ETFs remains high. SPDR Gold Shares ETF (GLD) traded at $364.38, iShares Gold Trust (IAU) at $74.62, VanEck Gold Miners ETF (GDX) at $78.61, and VanEck Junior Gold Miners ETF (GDXJ) at $102.48.

The surge in gold prices highlights growing investor confidence in the metal as a safe-haven asset amid economic uncertainty and expectations of monetary easing in the U.S.