Gold rose above $4,400 an ounce for the first time on Monday, driven by growing expectations of further U.S. interest rate cuts and strong safe-haven demand. Silver joined the rally, climbing to an all-time high as investor appetite for precious metals strengthened.
Commenting on the prices of yellow and silver metals Jigar Trivedi, Senior Research Analyst at Reliance Securities says, Gold prices climbed to an all-time high of $4,380 per ounce on Monday, driven by expectations of further US interest rate cuts and escalating geopolitical tensions. Markets are currently pricing in two additional rate cuts by the Federal Reserve next year, following softer-than-expected US inflation data last week. On the geopolitical front, the US is reportedly monitoring another vessel near Venezuela after having seized two tankers this month, while Ukraine struck a Russian tanker in the Mediterranean Sea for the first time.
Bullion has surged more than 60% so far this year, on track for its best year since 1979.The rally is also supported by strong central bank buying and sustained ETF inflows. MCX Gold February is likely to appreciate to Rs 136,000/10g as the trend is bullish in the world markets too.
Where as the silver metal climbs to record levels, Silver climbed more than 3% to above $69 per ounce on Monday, reaching a new record, driven by expectations of further Federal Reserve rate cuts and escalating geopolitical tensions. Recent US data point to moderating inflation and a softer labor market, giving the Fed more scope to ease policy, with markets pricing in two additional rate reductions next year. Lower interest rates tend to support non-yielding metals. Geopolitical developments, including intensified US sanctions on Venezuela and Ukraine’s attack on a Russian-controlled oil tanker in the Mediterranean, have further reinforced silver’s role as a safe-haven asset.
On the industrial side, demand remains robust, supported by growth in the solar, electric vehicle, and data center sectors, underpinning the metal’s long-term fundamentals. The precious metal is on track for an impressive gain of nearly 140% in 2025.
