Gold Price at Record High: Will the Rally Continue or Is a Profit-Booking Wave Ahead?

Gold prices are shining brighter than ever, holding firmly near record-high levels and keeping investors on edge. The precious metal has been supported by a powerful mix of global economic uncertainty, expectations of lower interest rates, and sustained buying by central banks. The big question now is whether gold will continue to scale new heights or face a round of selling pressure in the coming days.

On Tuesday, December 23, 2025, gold once again demonstrated its strength in the international market. During early Asian trading hours, spot gold surged to around $4,445.69 per ounce, marking an all-time high. This sharp rise highlights the strong global demand for safe-haven assets amid ongoing macroeconomic and geopolitical concerns.

Gold Prices in the Indian Market

The bullish trend is clearly visible in the domestic market as well. According to the latest market data, gold prices in India are trading at elevated levels across all purities:

• 24-carat gold: around ₹1,36,160 per 10 grams

• 22-carat gold: around ₹1,24,810 per 10 grams

• 18-carat gold: around ₹1,02,120 per 10 grams

These prices reflect not only international cues but also the impact of currency movements and strong local demand. Despite being at historic highs, buying interest in gold has remained resilient, particularly from long-term investors and institutions.

Why Is Gold Trading Near Record Highs?

Market experts believe that a combination of macroeconomic and technical factors is driving gold’s powerful rally.

1. Expectations of Interest Rate Cuts

One of the biggest reasons behind gold’s strength is the growing expectation that major central banks, especially in the United States, may cut interest rates in the near future. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors.

2. Geopolitical and Economic Uncertainty

Ongoing geopolitical tensions and concerns over global economic growth have increased demand for safe-haven investments. Gold has traditionally been viewed as a reliable hedge during uncertain times, and this role is once again supporting prices.

3. Strong Central Bank Buying

Central banks across the world have continued to add gold to their reserves, providing a strong structural support to prices. This steady demand has helped gold remain elevated even at record levels.

According to market participants, global uncertainty has not dampened investor appetite. Instead, it has reinforced gold’s status as a trusted asset for capital protection.

Expert Views on the Road Ahead

While the long-term outlook for gold remains positive, experts caution that short-term volatility cannot be ruled out.

Satish Dondapati, Fund Manager at Kotak Mutual Fund, believes that strong investment demand driven by inflation concerns, currency fluctuations, and geopolitical risks is keeping gold prices stable near record highs. However, he adds that if geopolitical tensions ease or the US dollar strengthens significantly, gold could enter a consolidation phase for some time.

From a technical perspective, analysts are also advising caution. Jateen Trivedi, Vice President (Research – Commodities & Currency) at LKP Securities, points out that gold has entered an overbought zone after its sharp rally. He notes that if gold prices fall below ₹1.34 lakh per 10 grams, profit booking could intensify.

On the upside, the ₹1.37 lakh per 10 grams level is being seen as a key resistance. A sustained move above this mark could open the door for further gains, while failure to hold above support levels may trigger short-term corrections.

Key Data to Watch This Week

Market participants are closely tracking upcoming US economic data, including:

• New home sales

• Core PCE price index

• Weekly jobless claims

These indicators could influence expectations around interest rates and the US dollar, thereby shaping gold’s near-term direction.

Should Investors Be Cautious Now?

With gold trading at record highs, experts suggest that investors should avoid chasing prices aggressively in the short term. Long-term investors may consider a gradual and disciplined approach, while short-term traders should remain alert to technical levels and global cues.

Conclusion

Gold’s rally to record-high levels reflects strong global demand for safety, fueled by economic uncertainty, central bank buying, and expectations of easier monetary policy. While the broader trend remains supportive, signs of near-term volatility and profit booking are emerging. Whether gold continues to shine brighter or faces a temporary pullback will depend on global developments and key economic data in the days ahead.

Disclaimer: The views expressed by market experts are their personal opinions. Investors are advised to consult certified financial advisors before making any investment decisions.