NEW DELHI, India — Gold prices climbed to a record high on Monday as strong safe-haven demand and expectations of future U.S. interest rate cuts fueled investor buying.
Spot gold rose to an all-time high of $4,383.73 per ounce, driven by growing optimism that the U.S. Federal Reserve could begin cutting interest rates in 2026 amid easing inflation pressures.
Gold has surged sharply in 2025, gaining about 67 percent so far, as geopolitical tensions, trade uncertainties and tariff-related risks have pushed investors toward defensive assets.
Analysts said both gold and silver extended gains from last week and opened the new week at fresh lifetime highs in domestic and international markets. The rally followed the U.S. Federal Reserve’s third interest rate cut of 25 basis points this year.
Additional support came from softer U.S. inflation data. Consumer price inflation eased to 2.7 percent year-on-year, reinforcing expectations that further rate cuts could be on the table next year, analysts said.
Market sentiment was also influenced by the Bank of Japan’s decision to raise interest rates by 25 basis points. However, its less aggressive stance than expected helped support precious metal prices rather than weigh on them.
Analysts said gold has near-term support in the $4,320–$4,285 range, with resistance seen between $4,400 and $4,425. Silver is supported around $66.40–$65.75, with resistance in the $67.20–$68.00 zone.
In rupee terms, gold support is seen between Rs 1,33,550 and Rs 1,33,010, while resistance is placed at Rs 1,35,350–Rs 1,35,970. Silver support is pegged at Rs 2,07,450–Rs 2,06,280, with resistance near Rs 2,09,810 and Rs 2,10,970.
Analysts cautioned that a strengthening U.S. dollar could pose a headwind for gold prices in the near term. However, ongoing global volatility and unresolved geopolitical risks continue to underpin demand.
Market participants noted that elevated risk premiums have prompted central banks to continue increasing gold purchases, providing a longer-term tailwind for prices.
In the domestic market, MCX silver futures continued to track international price action closely, holding above the Rs 2,07,800 breakout level with strong volumes.
Analysts said sustaining levels above this zone keeps near-term upside targets of Rs 2,10,000 to Rs 2,13,000 intact. Immediate support is seen near Rs 1,99,200, with deeper support around Rs 1,91,000 in the event of a broader correction.
Overall, analysts said the trend for precious metals remains firmly positive, with any price pullbacks likely to attract fresh buying interest rather than signal a reversal. (Source: IANS)
