Driven by expectations of US Federal Reserve rate cuts in 2026 and strong safe-haven demand among investors, spot gold rose to a record high of $4,383.73 per ounce on Monday.
In 2025, gold has surged around 67 per cent, supported by geopolitical uncertainties and tariffs. Analysts noted that both gold and silver prices advanced last week and started the new week by touching fresh lifetime highs in domestic and international markets.
The rally followed the US Federal Reserve’s third interest rate cut of 25 basis points this year. “Further support came from softer US CPI inflation, which eased to 2.7 per cent year-on-year, strengthening expectations of additional rate cuts next year,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Meanwhile, the Bank of Japan raised interest rates by 25 basis points, but its less-hawkish-than-expected stance provided additional support to precious metal prices.
Kalantri added that gold has support at $4,320–4,285 and resistance at $4,400–4,425 per ounce, while silver has support at $65.75–66.40 and resistance at $67.20–68.00. In Indian rupees, gold support is at Rs 1,33,010–1,33,550, with resistance at Rs 1,35,350–1,35,970. Silver support is at Rs 2,06,280–2,07,450, with resistance at Rs 2,09,810–2,10,970.
However, a strengthening dollar could weigh on gold prices. “While market volatility continues, resolution of geopolitical tensions is needed for the risk premium to ease. A high-risk premium has led central banks to extend their gold purchases, which could remain a long-term tailwind for prices,” according to a note by Yes Bank.
MCX silver futures have mirrored COMEX price action, sustaining above the Rs 2,07,800 breakout level with healthy volumes. “Holding above this zone keeps near-term upside targets of Rs 2,10,000–2,13,000 active. Immediate support is near Rs 1,99,200, with deeper support around Rs 1,91,000 if a broader corrective phase occurs. Overall, the trend remains decisively positive, and any dips are likely to attract buying rather than signal a reversal,” said Ponmudi R, CEO of Enrich Money.
— IANS
