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Gold prices soared to an all-time high this week, breaching $3,790 per ounce, driven by dovish signals from the U.S. Federal Reserve and surging physical demand in key markets. The rally follows remarks by newly appointed Fed Governor Stephen Miran, who called for more aggressive interest rate cuts to counter slowing economic momentum.
Miran’s comments have intensified expectations of monetary easing, weakening the U.S. dollar and boosting investor appetite for non-yielding assets like gold. The metal’s safe-haven appeal has also been reinforced by geopolitical tensions and persistent inflationary pressures.
Further buoying the market, physical gold premiums in India—one of the world’s largest consumers—have climbed to their highest levels in 2025, reflecting strong retail and festival-season demand. Traders report tightening supply and increased purchases ahead of Diwali, traditionally a peak period for gold buying.
Analysts note that the combination of central bank policy shifts, currency volatility, and robust physical demand could sustain upward pressure on bullion prices in the near term, though volatility remains a risk amid global economic uncertainty.
