Gold prices traded higher on Monday, December 22, supported by growing expectations of a US interest rate cut and strong physical demand. On MCX, gold February futures were trading near Rs. 1,35,224 per 10 grams, with a gain of around 0.8%, while silver March futures surged over 2% to trade close to Rs. 2,13,412 per kg.
Silver prices briefly touched a new all-time high, reflecting heightened speculative interest and tight supply conditions.
Mirroring the International prices, Gold prices increased in Mumbai. 24K gold rose to Rs. 13,528 from yesterday’s Rs. 13,418 per gram. The price for 10 grams of 24K gold has also increased to Rs. 1,35,280 from Rs. 1,34,180.
Similarly, 22K gold prices have also risen to Rs. 12,400 per gram from Rs. 12,300; the cost for 10 grams of 22K gold has risen to Rs. 1,24,000 from Rs. 1,23,000.
As in Mumbai, gold prices in Chennai also increased. 24K gold price per gram trades at Rs. 13,615 from the previous price of Rs. 13,528.
The price of 10 grams of 24K gold has also declined from Rs. 1,35,280 to Rs. 1,36,150.
Gold prices globally hit record highs after the US Federal Reserve indicated an increasing chance of interest rate reductions.
Weaker data in the US labor market, along with low inflation, have caused analysts to believe that monetary policy will ease sooner rather than later, possibly as soon as January.
Gold price has increased to $4,385/oz, creating a new all-time record; this has also created upward momentum in prices for gold futures.
The price of silver has risen at a greater rate than gold, over 68/oz.
Goldman Sachs thinks gold will increase by 14% to $4,900 per ounce by December 2026 in its base case due to continued demand from central banks and the Fed lowering interest rates.
Also Read: Gold Prices Soar to Best Gains Since 1979: What Lies Ahead?
Analysts highlight that MCX gold could extend gains toward Rs. 1,36,000 per 10 grams if bullish momentum sustains. Support is seen near the Rs. 1,33,000-Rs. 1,33,600 zone, while resistance lies between Rs.1,35,500 and Rs.1,36,000.
Silver remains more volatile, with domestic support positioned near Rs. 2,05,000-Rs. 2,06,500 and resistance around Rs. 2,10,000 - Rs. 2,12,000.