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What is the story about?
Gold prices remained near all-time high levels amid sustained expectations of interest rate cuts by major central banks, particularly the US Federal Reserve, even as short-term volatility persists across global markets.
Internationally, gold eased nearly 1% an ounce in the latest session but continued to trade close to all-time high, supported by a weaker dollar, safe-haven demand and growing confidence that the Federal Reserve will begin easing monetary policy in 2026.
The dollar has hovered near a three-month low, reinforcing bullion’s appeal as a non-yielding asset.
In India, gold futures on the Multi Commodity Exchange (MCX) rose ₹5,677, or 4.23%, over the past week to hit a lifetime high of ₹1,40,465 per 10 grams on Friday (December 26).
Analysts said subdued trading activity is likely in the near term as markets await key cues from the minutes of the US Federal Open Market Committee (FOMC), due early next week, which could offer clarity on the pace and timing of future rate cuts.
“After an exceptional rally in 2025, we do not expect similar returns next year, but the broader trend remains positive,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services.
He said expectations of monetary policy easing, de-dollarisation trends and ongoing global trade tensions continue to support gold prices.
Mer added that gold could move towards $5,000–5,200 per ounce globally and ₹1.50 lakh–1.55 lakh per 10 grams on the MCX in 2026, even as gains moderate compared to this year.
Market participants are also tracking policy signals from the Bank of Japan, developments in global trade, and economic conditions in the US and China.
On the international front, gold prices rose $165.4, or 3.77% an ounce, over the past week, touching an all-time high of $4,584 per ounce on Comex. Analysts noted that while central bank gold purchases have slowed compared to the previous three years, buying remains steady due to diversification needs and currency-related concerns amid expectations of lower interest rates.
Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One, said easing interest rates and anticipation of further rate cuts have strengthened gold’s attractiveness. He added that geopolitical uncertainty and trade-related risks have also driven safe-haven flows into the metal. Mallya expects gold prices to test ₹1.60 lakh per 10 grams on domestic exchanges in the first half of 2026.
-With agencies inputs
Internationally, gold eased nearly 1% an ounce in the latest session but continued to trade close to all-time high, supported by a weaker dollar, safe-haven demand and growing confidence that the Federal Reserve will begin easing monetary policy in 2026.
The dollar has hovered near a three-month low, reinforcing bullion’s appeal as a non-yielding asset.
In India, gold futures on the Multi Commodity Exchange (MCX) rose ₹5,677, or 4.23%, over the past week to hit a lifetime high of ₹1,40,465 per 10 grams on Friday (December 26).
Analysts said subdued trading activity is likely in the near term as markets await key cues from the minutes of the US Federal Open Market Committee (FOMC), due early next week, which could offer clarity on the pace and timing of future rate cuts.
“After an exceptional rally in 2025, we do not expect similar returns next year, but the broader trend remains positive,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services.
He said expectations of monetary policy easing, de-dollarisation trends and ongoing global trade tensions continue to support gold prices.
Mer added that gold could move towards $5,000–5,200 per ounce globally and ₹1.50 lakh–1.55 lakh per 10 grams on the MCX in 2026, even as gains moderate compared to this year.
Market participants are also tracking policy signals from the Bank of Japan, developments in global trade, and economic conditions in the US and China.
On the international front, gold prices rose $165.4, or 3.77% an ounce, over the past week, touching an all-time high of $4,584 per ounce on Comex. Analysts noted that while central bank gold purchases have slowed compared to the previous three years, buying remains steady due to diversification needs and currency-related concerns amid expectations of lower interest rates.
Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One, said easing interest rates and anticipation of further rate cuts have strengthened gold’s attractiveness. He added that geopolitical uncertainty and trade-related risks have also driven safe-haven flows into the metal. Mallya expects gold prices to test ₹1.60 lakh per 10 grams on domestic exchanges in the first half of 2026.
-With agencies inputs
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