Insights 
VT 
Gold prices in India rose on Wednesday, with FXStreet reporting the price at 11,657.22 Indian Rupees (INR) per gram, up from the previous day’s 11,634.65 INR. Similarly, the price per tola increased to 135,967.50 INR from 135,704.30 INR. The price of 10 grams is now at 116,572.40 INR, and a troy ounce costs 362,583.80 INR. Prices are calculated by adapting international rates to local currency and units, updated daily.
The US government shutdown continues into its fourth week, as the Senate failed to advance funding. President Donald Trump threatened tariffs on China but later expressed readiness for smoother relations, predicting a possible trade deal with President Xi Jinping. Meanwhile, US Treasury Secretary Scott Bessent plans to discuss trade tension de-escalation with China ahead of talks. Furthermore, traders expect nearly a 99% chance of an interest rate cut by the US central bank next week.
Gold’s Stability In Uncertainty
Gold is valued for its stability and is considered a good investment during uncertain times. Central banks are major buyers, with institutions from China, India, and Turkey increasing reserves. Gold prices are influenced by geopolitical events, interest rates, and the US Dollar. A weaker Dollar typically results in higher Gold prices.
We’re seeing gold prices rise, reflecting a recent softening in the US dollar. The metal is re-testing key resistance levels not seen since early this year, with the US Dollar Index (DXY) having recently dropped 2% over the last month to 103.5. This movement confirms gold’s historical tendency to strengthen when the dollar weakens.
The market is heavily focused on the Federal Reserve’s next move, especially after the latest inflation data for September 2025 showed a slight cooling. Current pricing from the CME FedWatch Tool suggests a 65% probability of a rate cut in the first quarter of 2026, making a non-yielding asset like gold more attractive. This reminds us of past cycles where the anticipation of lower rates fueled significant rallies in the precious metal.
Central Banks And Demand
Geopolitical tensions are also providing support for gold as a safe-haven asset. We are monitoring the ongoing supply chain frictions in Southeast Asia, which are creating uncertainty in the equity markets. This situation is similar to the volatility we saw during the US-China trade disputes years ago, which consistently pushed investors toward the security of gold.
We should also not ignore the steady demand from central banks, which provides a solid floor for the price. After a record year of purchases back in 2022, the World Gold Council’s most recent report for Q3 2025 showed that central banks collectively added another 280 tonnes to their reserves. This persistent buying from official institutions signals continued long-term confidence in the metal.
Given these bullish factors, we should consider positioning for a potential upside move in the coming weeks. Buying call options on gold futures or exchange-traded funds could be a direct way to capitalize on a price increase. Traders should watch for a rise above recent highs as confirmation of a new upward trend.
