Gold Hits Record High Amid US Federal Reserve Rate Cut Expectations

Spot gold reached a new peak of $4,383.73 per ounce due to anticipated US Federal Reserve rate cuts in 2026 and increased demand for safe-haven assets. The price of gold surged by about 67% in 2025, driven by geopolitical uncertainties and tariffs. Analysts noted that both gold and silver prices climbed to all-time highs last week in global and domestic markets. This surge followed a 25 basis points interest rate cut by the US Federal Reserve. Additionally, softer US CPI inflation at 2.7% year-on-year raised expectations for more rate cuts next year. The Bank of Japan also raised interest rates by 25 basis points, but its less aggressive stance further supported precious metal prices. Gold is expected to find support at $4,320-4,285 and resistance at $4,400-4,425, while silver’s support levels are at $66.40-65.75 and resistance at $67.20-68.00. In Indian rupees, gold is anticipated to have support at Rs 1,33,550-1,33,010 and resistance at Rs 1,35,350-1,35,970, with similar levels for silver. Despite potential challenges from a stronger dollar, gold prices are expected to benefit from ongoing market volatility and geopolitical tensions, prompting central banks to increase their gold purchases. MCX Silver Futures are closely tracking COMEX prices, maintaining levels above Rs 2,07,800 with strong volumes and a positive outlook. Analysts suggest that staying above this level could lead to near-term targets of Rs 2,10,000–Rs 2,13,000, with support at Rs 1,99,200 and Rs 1,91,000 in case of a broader correction. Overall, the trend remains optimistic, with any price dips likely to attract buying interest rather than signal a reversal.