This week, gold prices reached a new all-time high of $4,356 per ounce.
Satish Dondapati,
Fund Manager
ETF, Kotak Mutual Fund:
Mumbai, October 24, 2025: “This week, gold prices reached a new all-time high of $4,356 per ounce. The rally, which began in April 2025, has been supported by expectations of a potential U.S. Federal Reserve rate cut, heightened geopolitical tensions, robust investment demand, and continued central bank accumulation. The most recent $250–$300 upswing was largely driven by increased safe-haven buying amid concerns over the ongoing U.S. government shutdown.
Subsequently, gold prices witnessed some retracement as investors engaged in profit-taking following an extended rally of nearly 25% within two months. This correction was further accentuated by a rise in U.S. bond yields and a firmer U.S. dollar. Nevertheless, the decline appears to reflect short-term volatility rather than a fundamental reversal in trend.
In the near term, gold is likely to remain volatile due to uncertainty surrounding global trade policies and uncertainty over the U.S. shutdown. However, in the medium to long term, the key structural drivers for gold remain intact — including elevated global debt levels, persistent central bank demand, and ongoing geopolitical and inflationary pressures.
Investors are advised to exercise caution in making large lump-sum allocations to gold at current levels. Instead, a phased investment approach through SIPs or STPs in gold ETFs or gold mutual funds is recommended, aligned with individual risk tolerance and asset allocation frameworks.”
