Mumbai: Gold prices jumped to a new all-time high on Monday as investors rushed to safe assets amid global uncertainty. Spot gold climbed to a record level of USD 4,383.73 per ounce, supported by expectations
that the US Federal Reserve may cut interest rates further in 2026 and by strong demand from investors looking for stability.
Strong Rally Throughout 2025
Gold has had an exceptional run this year. In 2025 alone, prices have risen by nearly 67 per cent. Analysts say this sharp rise is mainly due to geopolitical tensions, trade tariffs and ongoing market volatility, which have pushed investors away from risky assets and towards gold and silver.
Rate Cuts Support Precious Metals
Gold and silver prices gained strongly last week and carried that momentum into the new week, touching fresh lifetime highs in both global and Indian markets. This rally followed the US Federal Reserve’s third interest rate cut of 25 basis points this year. Lower interest rates reduce the cost of holding gold, making it more attractive.
Inflation Data Adds to Optimism
Another positive trigger for gold was softer US inflation data. Consumer price inflation eased to 2.7 per cent year-on-year, raising hopes of more rate cuts next year. According to market experts, this has strengthened investor confidence in precious metals.
Global Central Banks Play a Role
The Bank of Japan recently raised interest rates by 25 basis points. However, its cautious tone reassured markets and supported gold prices. Analysts believe that central banks around the world are continuing to buy gold as protection against global risks, which could support prices in the long term.
Price Levels to Watch
Experts say gold has support between USD 4,320 and USD 4,285, while resistance lies near USD 4,400 to USD 4,425. In India, gold prices may find support around Rs 1,33,550, with resistance close to Rs 1,35,970. Silver also remains strong, with prices holding above key levels on MCX.
Outlook Remains Positive
Although a stronger US dollar could slow gold’s rise, analysts believe the overall trend remains positive. Ongoing geopolitical risks and central bank buying are likely to keep gold attractive. Any short-term price dips may attract fresh buying rather than signal a major fall.
