Hyderabad: Gold price surged to a record high on Monday, driven by expectations of US Federal Reserve rate cuts in 2026 and strong safe haven demand from investors amid global uncertainty. The current gold price reflects market reactions to these anticipated changes.
Spot gold climbed to an all-time high of $4,383.73 per ounce. Analysts said fresh buying interest emerged as investors positioned for easier monetary policy in the coming years, influencing the gold price significantly.
In 2025, gold has already risen about 67 per cent. The rally has gathered pace amid geopolitical tensions, trade tariffs, and persistent market volatility, further affecting the current gold price trends.
Fed rate cuts and inflation data support gold rally
According to market analysts, gold and silver prices advanced last week and opened the new week at fresh lifetime highs in both domestic and international markets. The rally followed the US Federal Reserve’s third interest rate cut of 25 basis points this year.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said softer US inflation added to the momentum. He noted that US CPI inflation eased to 2.7 per cent year-on-year, which strengthened expectations of further rate cuts next year, potentially impacting the gold price outlook.
Meanwhile, the Bank of Japan raised interest rates by 25 basis points. However, its less hawkish stance than expected provided additional support to precious metal prices.
Kalantri said gold has support in the $4,320–$4,285 range, while resistance lies between $4,400 and $4,425. Silver, he added, has support at $66.40–$65.75 and resistance at $67.20–$68.00.
Gold, silver outlook remains firm despite volatility
In rupee terms, analysts said gold has support at ₹1,33,550–₹1,33,010, while resistance stands at ₹1,35,350–₹1,35,970. Silver has support at ₹2,07,450–₹2,06,280 and resistance at ₹2,09,810 and ₹2,10,970.
However, analysts cautioned that renewed strength in the US dollar could act as a headwind for gold prices in the near term. Current gold price trends may fluctuate as the dollar value shifts.
A note by Yes Bank said elevated geopolitical risk premiums continued to support gold. The bank noted that central banks extended gold purchases amid uncertainty, which could remain a long-term positive factor for prices.
Meanwhile, MCX silver futures continued to mirror COMEX price action. Prices held above the ₹2,07,800 breakout level with healthy trading volumes.
Ponmudi R, CEO of Enrich Money, said holding above this level kept near-term upside targets of ₹2,10,000 to ₹2,13,000 intact. He added that immediate support stood near ₹1,99,200, with deeper support around ₹1,91,000 in case of a broader correction.
Overall, analysts said the trend in gold price remained positive. They added that corrective dips were likely to attract buying interest rather than signal a reversal.