Gold, Silver Smash Records as Fed Rate Cut Bets Grow, Dollar Slips, and Global Tensions Push Safe-Haven Buying

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Gold prices moved up sharply on Wednesday morning and created a new record on the Multi-Commodity Exchange. Silver prices also climbed fast and touched their highest level ever. Global signals stayed positive as markets expected further interest rate cuts by the US Federal Reserve. A weak US dollar supported the strong move in precious metals.

MCX gold February futures rose by 0.42% and touched a new high of Rs. 1,38,469 per 10 grams. Prices stayed firm after hitting a record. Around 9:20 am, gold traded close to Rs. 1,38,354 per 10 grams. 

Buying remained steady as traders followed global trends. Silver prices rose even faster. MCX silver March contracts jumped nearly 2% and reached a fresh peak of Rs. 2,23,742 per kg. Silver later traded near Rs. 2,23,481 per kg.

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Global Cues Lift Gold and Silver Prices


Global markets gave strong support to the rally. International gold prices crossed $4,500 per ounce for the first time. The rise came as investors expected more US Fed rate cuts next year. Inflation has slowed, and job market data has shown weakness. Lower interest rates created demand for gold and silver , as these metals do not earn interest. 

The weak dollar added more strength to prices. The dollar index slipped around 0.20% and fell to a near three-month low. A softer dollar makes gold and silver cheaper for buyers using other currencies. This often leads to higher demand in global markets.

Geopolitical Tensions Boost Safe Haven Demand


Geopolitical tensions also lifted safe-haven demand. Tensions between the US and Venezuela increased after reports of blocked oil tankers. Such developments raise uncertainty in financial markets. Investors usually move towards gold and silver during risky periods. Analysts said this factor helped push prices to new highs.

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Domestic prices followed the global trend. Spot gold prices in India have risen nearly 80% in recent months. Spot silver prices have surged about 145%. In international markets, gold prices have jumped over 70% this year. Silver prices have climbed close to 150%. Central banks continued buying gold, which supported prices. Strong inflows into exchange-traded funds also helped. Silver prices gained support from rising industrial demand and limited supply.

Key Support, Resistance, and Expert View


Experts shared important price levels to track. Analysts expect gold to trade between $4,284 and $4,580 per ounce in the near term. Silver may move between $66.40 and $74.00 per ounce. On MCX, gold has support near Rs. 1,36,660, while resistance stands close to Rs. 1,40,000. Silver has support around Rs. 2,17,700, while resistance lies near Rs. 2,25,000.

Some experts advised caution at higher levels. Profit booking may appear near Rs. 1,40,000 for gold and Rs. 2,24,000 for silver, especially before the holiday period. Analysts suggested waiting for price dips before taking fresh long positions.

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The overall outlook remains positive. US Fed rate cut hopes, dollar weakness, and global tensions continue to support gold prices and silver prices. Price swings may stay high in the short term, but the broader trend still favors precious metals.