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

Chennai: As the 2025 calendar year draws to a close, gold touched a new high on Monday after crossing $4,400 per ounce in the international market and 13,600 rupees per 10 grams in the Indian market.

In the international market, gold rose to $4408 per ounce and silver rose to $68.96 per ounce on Monday, amid expectations that the US interest rate cuts will continue and geopolitical tensions will increase.

After softening US inflation data last week, markets are pricing in two additional interest rate cuts by the Fed next year. This increased the luster of precious metals.

On the Multi Commodity Exchange, gold set a new record at Rs 1,36,199 per 10 grams and silver at Rs 2,14,583 per kg on Monday. Gold rose from Rs 76,772 and $2,623 per 10 grams at the beginning of the year, increasing by 77 percent in the domestic market and 68 percent in the international market.

Meanwhile, escalating tensions between the United States and Venezuela and between Israel and Iran have fueled safe-haven interests in precious metals. On Monday, the United States was tracking an oil tanker that was reportedly trying to evade sanctions linked to Venezuela’s oil trade. This was the third incident in recent weeks. It has been reported that Israel is also planning more attacks on Iran.

Concerns about a global economic slowdown due to US tariffs, strong central bank purchases, geopolitical tensions and hopes of lower interest rates are driving the bullion market.

Global financial company Goldman Sachs believes that in the baseline scenario, gold prices could rise 14 percent to $4,900 per ounce by December 2026.