Gold and silver prices rallied sharply on global and domestic commodity markets on Monday, driven by growing expectations of interest rate cuts by the U.S. Federal Reserve and sustained strong demand from buyers. On India’s Multi Commodity Exchange (MCX), gold February futures rose about 0.77% to approximately ₹1,35,224 per 10 grams, while silver March futures climbed more than 2% to around ₹2,13,412 per kilogram, with silver hitting fresh record highs during the session.

Key Highlights

• Gold prices surged on MCX amid expectations of US Fed rate cuts and strong spot demand.
• Experts highlight key resistance and support levels as bullion prices trade near record highs.

Traders and analysts attribute the strength in bullion markets to increased speculation that the Federal Reserve will lower interest rates further in the coming months, following softer U.S. inflation data and expectations of a more dovish monetary policy. Lower interest rates tend to weaken the U.S. dollar and reduce the opportunity cost of holding non-yielding assets like gold and silver, making them more attractive to investors.

International spot gold prices also surged, with gold reaching historic levels above $4,380 per ounce, reflecting broad safe-haven demand amid economic uncertainty, geopolitical tensions, and central bank buying. Silver, meanwhile, extended its momentum, benefiting from both investment demand and supply constraints, which have supported its upside.

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Market experts have highlighted key technical levels to watch in the near term, suggesting that gold prices may test resistance around ₹1,36,000 per 10 grams on the MCX if bullish sentiment persists. Support levels have also been identified that could act as cushions during corrections.

The strong performance in precious metals comes at a time when investors are increasingly seeking diversification and protection against inflation and currency volatility. As global monetary policy expectations evolve, gold and silver continue to draw significant interest from both retail and institutional buyers.