September Gold Alert: Why 22K and 24K Prices Are Climbing

You might be wondering why your WhatsApp family groups are buzzing with gold price updates and why Priya Aunty keeps postponing her daughter’s wedding jewelry shopping. Well, here’s the reality, the gold prices have crossed the ₹1.11 lakh mark per 10 grams for 24-karat gold this September, leaving many middle-class Indian families scrambling to understand what’s driving this unprecedented surge.

Just yesterday, 24-karat gold was trading at ₹1,11,410 per 10 grams while 22-karat gold reached ₹1,02,050 per 10 grams. To put this in perspective, if Rahul, a 35 year old professional from Bangalore, had bought gold a year ago, he would have paid around ₹90,105 per 10 grams. That’s a whopping 23% increase in just 12 months

The Perfect Storm: Why Gold is Breaking Records

Let’s break down the key factors that have created this gold rush in September 2025. To keep it simple: three big things are pushing gold up right now. Each one nudges the price higher; together they create the momentum we’re seeing

Global triggers — Fed rate moves and safe-haven flows

Trading desk with gold price chart and “Fed: Policy Update” headline. — Global cues Fed messaging and safe-haven flows push gold prices higher.

When the US Federal Reserve signals rate cuts or a slower pace of tightening, gold often benefits because lower real yields make non-yielding assets like gold more attractive. In September the Fed’s messaging and the actual cut widened expectations of easier policy helping global gold prices climb. That global move reflects down to Indian markets and imports. Reuters

Rupee depreciation and import demand

Gold bars with rupee notes and a falling USD/INR exchange rate on laptop screen. — Rupee weakness raises the rupee cost of imported gold

India imports most of its physical gold. When the rupee weakens vs the dollar, it raises the rupee price of imported gold even if the dollar price is stable. Recent weeks have seen pressure on the rupee due to oil and other forex demand, which has nudged domestic gold rates higher. Indian importers buying dollars to pay for bullion can push this further. Moneycontrol+1

Domestic demand — festivals, weddings and investor interest

Indian family shopping for gold bangles in a decorated jewellery shop. — Festival and wedding demand lifts local gold purchases across cities.

September/October is the start of wedding and festival season in India. Households traditionally buy jewellery and bars now rather than later — that seasonal demand adds real buying pressure. At the same time, some investors prefer gold as a hedge when equity or currency volatility rises, leading to ETF/investment demand. Local reports showed rebound and spikes in physical demand in major markets this month

Central Bank Buying Supports Price Floor

Reserve Bank of India vault with stacked gold bars and report indicating “Added 500 kg — June 2025”. — RBI’s gold purchase helps create a price floor

The Reserve Bank of India added 500 kg of gold to its reserves in June 2025, bringing total holdings to 879.8 tonnes. Gold now represents 12.1% of India’s forex reserves, up from 8.9% a year earlier. This institutional buying creates a strong price floor.

Globally, central banks have been on a gold-buying spree for three consecutive years, purchasing over 1,000 tonnes annually. This sustained institutional demand provides fundamental support to prices, especially when combined with retail and investment demand.

What Experts Predict for the Coming Months

Market analysts expect gold to remain in a strong uptrend. Goldman Sachs maintains its $3,700 per ounce target for year-end, while some international experts predict gold could hit $4,000 per ounce if geopolitical tensions escalate.

For Indian markets, experts forecast:

Any major correction seems limited due to strong fundamental support
MCX gold may trade between ₹1,12,000-₹1,12,500 per 10 grams on the higher side
Festive season could see continued investment demand despite high prices

Smart Strategies for Gold Investors

For New Buyers: Consider systematic investment plans in gold ETFs or gold mutual funds rather than lump-sum purchases during peak prices.

For Existing Holders: Those sitting on gold profits might consider partial profit-booking, especially if the metal hits ₹1,15,000 per 10 grams.

For Festive Buyers: Focus on exchange schemes offered by jewelers to minimize the cash outflow while upgrading existing jewelry.

Disclaimer

This blog provides information for educational purposes only and does not constitute financial advice. Readers should consult a qualified professional before making any investment decisions. imoneymatters.in is not responsible for any losses arising from actions taken based on this content.