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Spot gold in the London market breached $4,350 an ounce this week, marking a historic high. In India, prices have soared past ₹1,31,000 per 10 grams, in MCX, just ahead of the festive season. Since the beginning of August 2025, domestic gold prices have surged over 32%, while global prices have gained more than 30%. This relentless rally has left many questions: What’s fueling this surge, and is a correction on the horizon?Why Are Global and Domestic Prices Rising Without Correction?The current rally in gold is driven by a perfect storm of macroeconomic and geopolitical factors. Investors are flocking to gold as a safe haven, amid rising global uncertainty. The lack of any meaningful correction is largely due to:Persistent geopolitical tensions Weakening of the US dollarStrong retail and institutional demandHigh central bank purchasesSupply constraintsIn India, the festive and wedding season has further amplified demand, pushing prices higher despite the global rally.Why Has the Israel-Hamas Ceasefire Had No Impact?Despite a ceasefire between Israel and Hamas, gold prices remain elevated. This is because there are expectations that the ceasefire may be fragile and temporary, with risks of renewed conflict. Broader tensions in the Middle East, including Iran’s involvement and regional instability, continue to fuel risk aversion. Investors are pricing in long-term geopolitical uncertainty, not just short-term peace deals.Thus, gold continues to act as a hedge against geopolitical shocks, even when temporary resolutions emerge.Why Are People So Resilient on Gold?Gold’s resilience stems from its historical role as a store of value. In uncertain times, investors prefer assets that could preserve wealth during inflation or currency depreciation. Also, they rely on assets that are globally recognized and liquid and offer psychological comfort in volatile markets. In India, cultural affinity and seasonal buying further strengthen gold’s appeal. Central banks are also increasing gold purchases, diversifying away from dollar-denominated assets due to heightened risk aversion amid growing concerns over U.S. governance and monetary policy direction.Weak US Dollar and US Treasury Shutdown The US dollar index has weakened significantly in recent months due to anticipation of rate cuts by the US Federal Reserve, slowing US economic growth, and rising fiscal deficits and debt concerns. The ongoing U.S. Treasury shutdown has also intensified global economic uncertainty, prompting investors to seek refuge in safe-haven assets like gold.A weaker dollar makes gold more attractive to international buyers, thereby boosting demand and prices. Historically, gold and the dollar share an inverse relationship, and this trend is playing out strongly in 2025.Impact of New Tariffs on ChinaThe recent imposition of new tariffs on Chinese goods by the US has rattled global trade. This has several implications for gold. This could increase trade tensions, prompting investors to seek safe assets. It may also lead to slower global growth, further boosting the appeal of gold. China, a major gold consumer and importer, may diversify reserves further into gold to hedge against trade-related risks. Thus, the trade war narrative is adding another layer of support to gold’s bullish momentum.Are Fundamentals Still Positive for Gold?Yes, the fundamentals remain strongly supportive. Geopolitical instability in the Middle East and Eastern Europe, trade concerns with China, weakening dollar and potential Fed rate cuts and Investor shift toward safe assets amid volatile equity markets collectively create a favorable environment for gold, both as a hedge and an investment.Is a Price Correction Possible? What Could Trigger It?While the rally seems unstoppable, a correction is always possible. Potential triggers include:Stabilization in geopolitical tensions.Strengthening of the US dollar, possibly due to unexpected Fed policy shifts.Profit booking by investors after such a steep rise.Improved global economic outlook, reducing the need for safe-haven assets.Government interventions, such as import restrictions or higher taxes on gold.If any of these factors materialize, gold could see a short-term pullback, though the long-term outlook remains constructive.Gold’s meteoric rise in 2025 is a reflection of global anxiety, economic fragility, and investor caution. While the fundamentals remain supportive, the possibility of a correction cannot be ruled out. For now, gold continues to glitter—both as a cultural symbol and a financial fortress.(The author of ther article, Hareesh V is Head of Commodity Research, Geojit Investments.)

Central Railway will operate 1,702 special trains for the Diwali and Chhath Puja festivals in an effort to help passengers travel to their destinations and join their families on the festival.CPRO, Central Railway, Swapnil Nila told on Saturday, "The Central Railway is preparing for the upcoming Chhath and Diwali festivals by operating 1,702 special trains to help passengers travel to their destinations to celebrate with their families... These trains will start from stations such as Chhatrapati Shivaji Maharaj Terminus, Lokmanya Tilak Terminus, Pune, Kolhapur, and Nagpur... Over 800 of these trains will serve routes to Uttar Pradesh, Bihar, West Bengal, and the northeastern states... Trains will connect various other locations within the country."CPRO added that Extra counters have been set up at major stations for the convenience and safety of the passengers.He further added, "To ensure passenger comfort and safety, holding areas with a capacity of over 3,000 passengers each have been established at major stations, equipped with amenities such as food, water, toilets, and fans... Mobile UTS services are available for ticket booking, and additional ticket counters have been opened to reduce waiting time..."Earlier on Saturday, the Indian Railways has decided to take strict action against social media handles sharing'misleading' videos related to railway operations.During this festive season, some social media handles have been circulating old or misleading videos, creating confusion among passengers, said the railways in a statement.The railway administration stated that over 20 such social media handles have been identified, and the process of filing FIRs has been initiated. A 24x7 social media monitoring mechanism has been put in place to keep a close watch on such antisocial elements.The railway has appealed to all social media users to refrain from sharing videos of crowds or other incidents at stations without verifying the facts.Passengers are urged to rely only on official Railway notifications and verified social media handles of the Ministry of Railways, i.e., @RailMinIndia on X, Facebook, Instagram, and YouTube for authentic information.

Novo Nordisk has appointed U.S. pharmaceutical executive Greg Miley as its new global head of corporate affairs, as the obesity drugmaker faces growing pressure from U.S. President Donald Trump on drug pricing. Miley recently served as senior vice president of government affairs at U.S. pharmaceutical giant AbbVie. He posted a statement on LinkedIn on Friday and Novo Nordisk shared the statement with Reuters. Novo is turning to an American executive with deep U.S. pharmaceutical experience to help navigate political risks under the Trump administration in the United States, its largest market. NEW HIRE TO FOCUS ON RELATIONS WITH TRUMP ADMINISTRATION The appointment comes as new CEO Mike Doustdar tries to revive investor confidence through a restructuring to sharpen Novo's focus in a fierce obesity drug battle against U.S. rival Eli Lilly. The overhaul includes cutting 9,000 jobs, with 5,000 positions being eliminated in Denmark and layoffs underway across multiple U.S. departments. "In this new role, I see great potential to strengthen our Global Communication and Public Affairs efforts," Miley wrote on LinkedIn, adding that he would begin his new role next month and would relocate to Denmark, Novo's home market. Miley's urgent priority will be improving Novo's relations with the Trump administration, said a source familiar with the matter who spoke on condition of anonymity to discuss confidential information. Other big pharmaceutical companies have hired public affairs experts with long backgrounds in Republican circles in order to navigate the administration's pressures on the industry, a source at a European drugmaker told Reuters on Friday. TRUMP SAYS OZEMPIC PRICE IN US WILL BE LOWERED Shares of Novo and Lilly fell on Friday after Trump said that the price of Novo's Ozempic diabetes treatment would be lowered. Ozempic contains the same active ingredient as its weight-loss drug Wegovy. Miley spent the past decade at AbbVie in Chicago and was promoted two years ago to senior vice president of government affairs, according to his LinkedIn profile. He has worked in the pharmaceutical industry since 2004, building his career at U.S. drugmakers including more than four years in public affairs at Abbott and nearly five years at Pfizer. AbbVie did not immediately reply to a request for comment. Miley did not reply when contacted by Reuters earlier on Friday. (Reporting by Maggie Fick in London and Stine Jacobsen in Copenhagen, Editing by Louise Heavens, Kirsten Donovan)

The suits are finally joining the party at the homes of their employees this festive season. Companies are easing protocol, offering greater flexibility and time off to cover employees under festival stress. Some firms are celebrating Diwali with the employees reaching office fighting traffic choked by festive shoppers in the national capital and other metros.RPG is following a 50% work-from-home policy. Its employees can use flexibility to work from home or any location of their choice and flexible working hours coordinated with their respective managers as and when needed, including during the festive season. For those reaching their offices, RPG is encouraging its employees to take the recently inaugurated metro line in Mumbai that is close to its office. This is to prevent them from getting stuck in traffic snarls, said the company spokesperson. "The Worli metro station in the Aqua line (Metro line 3), which became fully operational a few weeks ago, is just about 500 metres from our head office (Mumbai)," said the RPG spokesperson. Like other organisations, Deloitte also has optional days off. In some locations, a certain day next week is an optional day off for Deloitte employees. "Since most colleagues availed this option, we decided to keep those offices closed and have WFH for those who haven't taken leave," Deepti Sagar, chief people and experience officer, Deloitte India.. "Our continuing hybrid working pattern benefits us with each team having the discretion to decide whether WFH will work better due to festive season traffic or any other circumstances," said Sagar. Embassy Group, a real estate developer, is giving a Diwali break from 18th to 26th October, while SgurrEnergy, a renewable energy engineering and consulting firm, is also offering a 9-day Diwali break to all 200-plus employees across India. In addition to the break, Embassy is also organising festive luncheons, personalised gifts, and bonuses, its spokesperson told ET.While for some firms, bonuses are further increasing the festive cheer. "Diwali bonuses in India are largely on track this year, especially in the manufacturing sector, including industrial goods, automotive, and consumer durables," said Rajul Mathur, consulting leader, Work and Rewards, WTW India. According to Mathur, some companies, particularly in South India, have already paid their Diwali bonuses before the festival, while the automotive sector is expecting higher payout numbers due to strong sales performance.Most companies in the manufacturing space, especially industrial goods, automotive and consumer durables are on track for Diwali bonus, said experts.Higher Payouts at Car DealershipsThe overarching fact is that car bookings and consequent sales have seen multi-fold jump post GST revisions, and both wholesale and retail sales are beating expectations, said Yagesh Singhania, director, Deloitte. “For the blue-collar workforce, there is already a trend of ex gratia bonus for the year being paid during the Diwali month in addition to Diwali gifts, etc. This will continue this year.”He also said almost all automotive OEM companies have paid the increments and bonuses for the previous fiscal year for their white-collar workforce. At the dealership level, there will be higher payouts for September end, October and November on account of larger bookings. “OEMs have already created multiple festival incentive plans to encourage dealerships to boost sales.”