New Delhi, Dec 22 (NationPress) Fueled by expectations of US Federal Reserve rate reductions in 2026 and a robust safe haven demand, spot gold surged to a historic peak of $4,383.73 per ounce on Monday.

In 2025, gold has experienced an extraordinary ascent, climbing approximately 67% amid ongoing geopolitical tensions and tariffs.

Analysts indicate that both gold and silver prices increased last week, starting the new week by achieving fresh lifetime highs in domestic and global markets.

This surge followed the US Federal Reserve’s third interest rate reduction of 25 basis points this year.

“Additional backing came from softer US CPI inflation, which eased to 2.7% year-on-year, bolstering expectations of further rate cuts next year,” stated Rahul Kalantri, VP of Commodities at Mehta Equities Ltd.

Meanwhile, the Bank of Japan increased interest rates by 25 basis points, but its less aggressive stance provided further support to precious metal prices.

“Gold has support at $4,320-4,285 while facing resistance at $4,400-4,425. Silver has support at $66.40-65.75 and resistance at $67.20-68.00,” he added.

In Indian rupees, gold has support at Rs 1,33,550-1,33,010 and resistance at Rs 1,35,350-1,35,970. Silver has support at Rs 2,07,450-2,06,280 and faces resistance at Rs 2,09,810 and Rs 2,10,970, according to analysts.

However, the strengthening dollar may pose a challenge for gold prices.

As market volatility persists, a resolution in geopolitical issues is essential for the risk premium to decrease—a high-risk premium scenario has led Central Banks to continue increasing their gold purchases, which could serve as a long-term tailwind for gold prices,” noted Yes Bank.

MCX Silver Futures continue to track COMEX price movements, maintaining above the Rs 2,07,800 breakout level with solid volumes and a constructive structure.

“Staying above this threshold keeps near-term upside targets of Rs 2,10,000–Rs 2,13,000 viable. Immediate support is near Rs 1,99,200, with deeper support around Rs 1,91,000 if a broader corrective phase occurs. Overall, the trend remains decisively positive; any corrective dips are likely to attract buying interest instead of signaling a reversal,” according to Ponmudi R, CEO of Enrich Money.