Gold and Silver Futures Soar to New Highs Amid Fed Rate Cut Expectations and Weakening Dollar
Bullion markets soar as US Federal Reserve rate cut expectations and a softer dollar drive unprecedented gains in gold and silver prices.
India, Dec 22 : Gold and silver prices surged to fresh lifetime highs in domestic and international markets on Monday, fueled by expectations of further US Federal Reserve rate cuts and a weakening dollar.
On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped Rs 1,628, or 1.21%, reaching a record Rs 1,35,824 per 10 grams, after gaining Rs 574, or 0.43%, last week. Silver futures for March 2026 contracts soared Rs 6,144, or 2.95%, to touch an all-time high of Rs 2,14,583 per kilogram, following an 8.08% rise over the past week.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, said, “Gold and silver prices began the week by touching fresh lifetime highs in both domestic and international markets,” noting that the dollar index remained flat at 98.60, lending additional support to bullion prices.
Global Bullion Markets Follow Suit
Globally, Comex gold futures for February rose USD 42, or 0.96%, to USD 4,429.3 per ounce, while Comex silver futures for March 2026 gained USD 2.04, or 3.02%, to USD 69.52 per ounce, marking new record highs. Both metals have seen strong weekly gains, with silver climbing 8.84% and gold up steadily.
Manav Modi, Analyst at Motilal Oswal Financial Services, said, “Gold and silver prices surged near USD 4,400 and USD 70 on Comex, boosted by safe-haven demand, expectations of further Fed rate cuts after last week’s quarter-point reduction, and a softer dollar.” He added that gold is up 67% and silver over 125% for the year, driven by geopolitical tensions, central bank buying, and hopes of lower interest rates.
Industrial and Geopolitical Factors Boost Silver
Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted that geopolitical developments, including US sanctions on Venezuela and Ukraine’s attack on a Russian-controlled oil tanker, reinforced silver’s safe-haven appeal. He also pointed out that silver’s industrial demand remains robust, supported by solar energy, electric vehicles, and data centers, strengthening the metal’s long-term fundamentals.
