Gold Soars to All-Time High Amid Fed Cut Expectations, Geopolitical Uncertainty

According to analysts, gold and silver prices advanced last week and began the new week by touching fresh lifetime highs in both domestic and international markets.

The rally followed the US Federal Reserve’s third interest rate cut of 25 basis points this year.

“Further support came from softer US CPI inflation, which eased to 2.7 per cent year-on-year, strengthening expectations of additional rate cuts next year,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Meanwhile, the Bank of Japan raised interest rates by 25 basis points, but its less-hawkish-than-expected stance provided additional support to precious metal prices.

“Gold has support at $4,320-4,285 while resistance at $4,400-4,425. Silver has support at $66.40-65.75 while resistance is at $67.20-68.00,” he mentioned.

In Indian rupee, gold has support at Rs 1,33,550-1,33,010 while resistance at Rs 1,35,350-1,35,970. Silver has support at Rs 2,07,450-2,06,280 while resistance at Rs 2,09,810, 2,10,970, said analysts.

However, ensuing dollar strength can be a headwind for gold prices.

While market volatility continues, resolution in geo-political situations need to come down for the risk premium to cool – 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,” according to a note by Yes Bank.

MCX Silver Futures continue to mirror COMEX price action, sustaining above the Rs 2,07,800 breakout level with healthy volumes and constructive structure.

“Holding above this zone keeps near-term upside targets of Rs 2,10,000–Rs 2,13,000 active. Immediate support is placed near Rs 1,99,200, with deeper support around Rs 1,91,000 if a broader corrective phase unfolds. Overall, the trend remains decisively positive, and any corrective dips are likely to attract buying interest rather than signal a reversal,” according to Ponmudi R, CEO of Enrich Money.