Gold, silver prices rise to fresh record highs on safe-haven demand and rate cut bets

Gold and silver prices surged to new record levels on Monday, supported by strong safe-haven demand and expectations of further interest rate cuts by the US Federal Reserve.

Spot gold climbed to an all-time high of $4,383.73 per ounce, driven by geopolitical uncertainty, trade tensions and growing optimism over easier monetary policy ahead. In 2025, gold prices have risen by around 67%, reflecting heightened global risks and sustained investor demand for safe assets.

Silver prices also moved higher, tracking gains in gold and touching fresh lifetime highs in both domestic and international markets, analysts said.

The rally followed the US Federal Reserve’s third 25-basis-point rate cut this year, along with softer US inflation data. US consumer price inflation eased to 2.7% year-on-year, reinforcing expectations of additional rate cuts in 2026, according to market participants.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said precious metals also benefited from global central bank actions. While the Bank of Japan raised interest rates by 25 basis points, its less aggressive stance than anticipated provided further support to gold and silver prices.

Analysts said gold has support in the $4,320–4,285 range, with resistance seen between $4,400 and $4,425. Silver support is placed at $66.40–65.75, while resistance lies at $67.20–68.00.

In the domestic market, gold is supported at ₹1,33,550–₹1,33,010, with resistance at ₹1,35,350–₹1,35,970. Silver has support at ₹2,07,450–₹2,06,280, and resistance between ₹2,09,810 and ₹2,10,970, analysts said.

Market experts cautioned that a stronger US dollar could limit gains in gold. However, continued geopolitical risks and sustained central bank purchases are expected to provide long-term support.

According to Yes Bank, high risk premiums linked to global uncertainties have encouraged central banks to continue increasing their gold holdings, which could remain a long-term positive factor for prices.

Meanwhile, MCX Silver futures continued to mirror global trends, holding above the key ₹2,07,800 breakout level. Analysts said maintaining this level keeps near-term upside targets of ₹2,10,000–₹2,13,000 intact, with corrective dips likely to attract buying interest rather than signal a trend reversal.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)