Gold Rate Massive Spikes: Is this The Hidden Reason?

In the recent weeks, the sharp spike in gold prices have become a focal point of discussion all over. Gold prices have witnessed a steep rise recently, driven largely by aggressive purchases from BRICS nations.

Central banks across the world acquired about 166 tonnes of gold in just one quarter, which is a 41% increase compared to past averages. This trend is linked to the ongoing push, as BRICS countries shift reserves away from the U.S. dollar and rely more on gold, a globally accepted and stable asset.

Such large-scale buying has two major effects. It reduces the available global supply of gold, making the metal scarcer, while also signaling to investors that gold remains the most reliable hedge during times of financial and geopolitical uncertainty. Both these factors have fueled demand and pushed global gold rates higher.

The effect is strongly felt in India, one of the world’s largest gold markets. As of early October 2025, 24-carat gold is priced at around ₹11,864 per gram, while 22-carat gold trades near ₹10,875 per gram. This means a standard 10-gram 24K gold bar now costs about ₹1.18 lakh, reflecting historically high levels.

With expectations that BRICS may even link a future currency to gold, demand is set to remain strong, keeping Indian prices elevated.