Gold rate today: Gold saw renewed buying interest in Monday’s session, December 22, with both domestic and global prices scaling fresh record highs as the latest batch of US economic data reinforced expectations of US Federal Reserve rate cuts in 2026, boosting the appeal of the non-yielding metal.
The February futures contract on MCX opened the session higher at ₹1,34,899 per 10 grams, compared to the previous close of ₹1,34,196, and maintained momentum to ₹1,36,458″>touch a fresh record high of ₹1,36,458 (up ₹2,262 per 10 grams), bringing the year-to-date rally to 77.5%, putting it on track for the best annual gain since the inflationary shock of 1979.
By 8:00 PM IST, MCX gold was trading ₹2,219, or 1.65%, higher at ₹1,36,452 per 10 grams. The spot gold prices also edged higher, rising 1.35% to $4,346 per ounce, marking a seven-week high and just 0.80% below the record high of $4,381.
The spot gold prices have crossed the $4,400-an-ounce mark to touch a fresh peak of $4,428.
Silver prices also jumped ₹6,144 to touch a ₹2,14,583 per kilo”>record high of ₹2,14,583 per kilo on MCX, crossing ₹2.14 lakh for the first time and taking its year-to-date rally to 145%, nearly double the gain of gold.
Fed rate cut bets, geopolitical tensions drive gold higher
Traders are currently pricing in two rate cuts by the Federal Reserve next year, even though delayed data on the job market and inflation offered little clarity about the state of the U.S. economy, while US President Donald Trump has also advocated for looser monetary policy.
Meanwhile, Fed Bank of Cleveland President Beth Hammack on Sunday said that policy is well-positioned to pause and assess the impact of the 75 basis points of rate cuts in the economy.
Investor attention now shifts towards the second estimate of GDP for the third quarter, set for release on Tuesday, which may offer further insights into the economy’s health and the Federal Reserve’s interest rate path.
Apart from the strengthening rate cut bets, the prices also found support from rising geopolitical tensions. The US has intensified an oil blockade against Venezuela, stepping up pressure on the government of President Nicolás Maduro, while Ukraine attacked an oil tanker from Russia’s shadow fleet in the Mediterranean Sea for the first time.
Gold has bounced back quickly after a retreat from its peak in October, when the rally was seen as overheated, and is now positioned to carry these gains into next year.
Global brokerage firm Goldman Sachs Group Inc. is among several banks that predict prices will keep rising in 2026, issuing a base-case scenario of $4,900 an ounce with risks to the upside.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
