Gold, Silver Make New Highs on Fed Rates, Global Tensions

 Chennai: As the calendar year 2025 moved closer to its end, gold made another high on Monday after crossing $4400 per ounce in the international market and Rs 13,600 per 10 gm in the Indian market.

In the international market gold touched $4408 per ounce and silver made a high of $68.96 per ounce on Monday amidst expectations of further US interest rate cuts and escalating geopolitical tensions.

After the US inflation data last week softened, markets are pricing in two additional rate cuts by the Federal Reserve next year. This has increased the lustre of the precious metals.

In the Multi Commodity Exchange, gold made a new high of Rs 1,36,199 per 10 gm and silver Rs 2,14,583 per kg on Monday. Gold has moved up from Rs 76,772 per 10 gm and $2623 at the beginning of the year, moving up 77 per cent in the domestic market and 68 per cent in the international market.

Meanwhile, the escalation of tension between US and Venezuela and Israel and Iran ignited safe haven interests in the precious metals. On Monday the US was tracking an oil tanker, which was reportedly engaged in sanctions evasion linked to Venezuela’s oil trade. This was the third such event in recent weeks. Israel too was reportedly planning more strikes on Iran.

Concerns over global economic slowdown due to US tariffs, strong central bank buying, geopolitical tensions, and hopes of lower interest rates have been driving the bullion market.

Global financial firm Goldman Sachs believes gold prices may jump by 14 per cent to $4,900 per ounce by December 2026 in a base case scenario.