Gold: Due to robust demand for safe havens hits a record high

Gold: Spot gold reached a new high of $4,383.73 per ounce on Monday, driven by robust investor demand for safe haven assets amid forecasts of anticipated US Federal Reserve rate cuts in 2026.

Due to tariffs and geopolitical unpredictability, gold prices have skyrocketed in 2025, rising by over 67%.

Analysts say that the price of gold and silver rose last week and hit new all-time highs in both local and foreign markets at the start of this week.

The increase came after the US Federal Reserve lowered interest rates by 25 basis points for the third time this year.

Rahul Kalantri, vice president of commodities at Mehta Equities Ltd., said that “further support came from softer US CPI inflation, which eased to 2.7% year-over-year, strengthening expectations of additional rate cuts next year.”

Although the Bank of Japan boosted interest rates by 25 basis points, the price of precious metals was further supported by its less aggressive than anticipated attitude.

“Gold is supported between $4,320 and $4,285, and it is resistant between $4,400 and $4,425. He said that silver has resistance around $67.20-68.00 and support at $66.40-65.75.

Gold’s resistance in the Indian rupee is around Rs 1,35,350-1,35,970, while its support is at Rs 1,33,550-1,33,010. According to experts, silver has resistance around Rs 2,09,810, and 2,10,970 and support at Rs 2,07,450-2,06,280.

The subsequent rise of the dollar, however, may act as a drag on gold prices.

“A high-risk premium situation has led to Central Banks extending their purchase of gold and can remain a long-term tailwind for gold prices,” a report from Yes Bank said. “As long as market volatility persists, resolution in geopolitical situations must decrease for the risk premium to cool.”

Maintaining above the Rs 2,07,800 breakout mark with robust volumes and a positive structure, MCX Silver Futures keeps up with COMEX price action.

“Near-term upside goals of Rs 2,10,000–Rs 2,13,000 remain active when holding above this zone. If a more extensive corrective phase develops, deeper support is located around Rs 1,91,000. Immediate support is situated close to Rs 1,99,200. According to Ponmudi R, CEO of Enrich Money, “the trend is still clearly positive overall, and any corrective dips are likely to attract buying interest rather than signal a reversal.”