“Gold is now seen trading in a higher range,” says analyst as safe-haven demand fuels record rally. For the third consecutive session, gold prices on the Multi Commodity Exchange (MCX) surged to a fresh all-time high on Monday, December 15. This relentless climb is powered by a potent mix of anticipated U.S. interest rate cuts and ongoing global geopolitical tensions, which are simultaneously weakening the U.S. dollar and boosting the metal’s appeal as a safe investment.
How High Did Gold Prices Actually Go?
The February gold futures contract on MCX opened strong and kept climbing. It started the day at ₹1,34,204 per 10 grams, up from the previous close of ₹1,33,622, and soared to a historic intraday peak of ₹1,35,496. By late evening, prices were holding firm at ₹1,34,689, marking a gain of ₹1,081 or 0.80% for the day. This latest jump adds to an astonishing year-to-date rally of 75.5%, setting gold on course for its most significant annual gain in over four decades. Silver joined the party, with March futures rocketing nearly ₹6,000 per kilogram to ₹1,99,500, following its own record-breaking run past ₹2 lakh last week.
What’s Behind This Powerful Rally?
Two major global forces are converging to push gold higher. First, investors are betting on looser U.S. monetary policy after the Federal Reserve’s recent rate cut, with more easing expected if economic data softens.The expectation has pulled down U.S. Treasury yields and the dollar, reducing the cost of holding non-yielding gold for international investors. Meanwhile, continued geopolitical risks across Eastern Europe and the Middle East are sending money into safe-haven assets such as gold. This combined support is keeping market sentiment firmly bullish.
What Are Experts Saying About the Trend?
Analysts confirm the momentum is structurally strong. Indeed, quite a bit. Due to comparable safe-haven demand and its industrial applications, silver futures have increased by over 130% year-to-date in 2025, almost twice as much as gold. He highlights key U.S. reports due this week, including Non-Farm Payrolls and inflation data, which could inject volatility but keep the focus on a supportive macro backdrop. Gold has consistently produced “higher highs and higher lows,” with the price comfortably above significant moving averages, according to Axis Securities. This technical scenario indicates strong upward momentum.
What is the Short-Term Outlook for Investors?
The immediate trajectory appears bullish but within a defined range. Analysts at LKP Securities see gold trading between ₹1,33,000 and ₹1,36,500 in the near term. Axis Securities maintains a “buy” recommendation, suggesting entries around ₹1,31,600 with a downside protection stop loss below ₹1,28,000.As long as the crucial support level of ₹1,25,000 remains stable during any dips, they envision possible price objectives reaching ₹1,35,000 and perhaps ₹1,37,000.
Key FAQs for Investors:
Q: Why does a weak U.S. dollar help gold prices?
A: Around the world, gold is priced in U.S. dollars. A falling dollar makes gold more affordable for buyers in other currencies, increasing demand and lifting prices.
Q: What U.S. data is the market watching this week?
A: Around the world, gold is priced in U.S. dollars. A falling dollar makes gold more affordable for buyers in other currencies, increasing demand and lifting prices.
Q: Is silver outperforming gold?
A: Indeed, quite a bit. Due to comparable safe-haven demand and its industrial applications, silver futures have increased by over 130% year-to-date in 2025, almost twice as much as gold.
Q: What is a key technical support level for MCX gold?
A: Analysts identify ₹1,25,000 per 10 grams as a major support level. As long as prices stay above this, the overall trend is considered positive.
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