Daybreak Gold’s record run is really a dollar story with a rupee twist
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Sep 17, 2025 Gold prices are hitting all-time highs globally and in India, surging over 40% this year. Experts suggest this is driven by central bank purchases and expectations of U.S. rate cuts, which weaken the dollar. This gold rally signifies a squeeze on India's economy, impacting jewelry costs and imports while putting pressure on the rupee, which has fallen significantly. The discussion reveals important insights into how gold’s rise reflects broader global financial trends.
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Why Gold Is Racing To Records
- Gold's record highs reflect central banks buying, Fed rate-cut expectations, and muted household selling in India.
- These combined forces tightened supply and raised demand, lifting global and domestic prices.
Rate Cuts, Dollar Weakness And Gold
- Central banks steadily adding gold and expected US rate cuts lower bond yields, reducing gold's opportunity cost.
- A weaker dollar makes dollar-priced gold cheaper for other-currency buyers, fueling more purchases.
Households Hoarding Gold In India
- Reuters reports Indian households are holding old jewellery instead of selling at high prices.
- That behavior kept scrap supply muted even as imports surged, tightening domestic markets.