Gold price hits record high on Fed rate cut hopes
Hyderabad: Gold price surged to a record high on Monday as investors reacted to expectations of US Federal Reserve rate cuts in 2026 and increased safe haven demand amid global uncertainty. Market participants continued to position themselves for easier monetary conditions, which supported the latest rally in bullion prices.
Spot gold climbed to an all-time high of $4,383.73 per ounce. Analysts said fresh buying interest emerged as investors adjusted portfolios in anticipation of future policy easing, keeping the gold price firmly supported at elevated levels.
In 2025, gold has already gained about 67 per cent. The rally accelerated against the backdrop of geopolitical tensions, trade tariffs, and persistent volatility across financial markets, all of which reinforced demand for precious metals.
Gold price supported by Fed rate cuts and inflation trends
Market analysts said gold and silver prices advanced last week and opened the new week at fresh lifetime highs in domestic and international markets. The uptrend followed the US Federal Reserve’s third interest rate cut of 25 basis points this year, which improved sentiment toward non-yielding assets.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said softer US inflation added momentum to the rally. He noted that US CPI inflation eased to 2.7 per cent year-on-year, strengthening expectations of further rate cuts next year and lending continued support to the gold price.
Meanwhile, the Bank of Japan raised interest rates by 25 basis points. However, its less hawkish tone than anticipated provided additional support to precious metal prices, according to analysts.
Kalantri said gold has support in the $4,320–$4,285 range, while resistance lies between $4,400 and $4,425. Silver has support at $66.40–$65.75 and resistance at $67.20–$68.00.
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 support is seen at ₹2,07,450–₹2,06,280, with resistance at ₹2,09,810 and ₹2,10,970.
However, analysts cautioned that renewed strength in the US dollar could act as a short-term headwind. Despite this, they added that corrective dips in gold price were likely to attract buying interest rather than signal a trend reversal.
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