Gold price today: Rates jump on MCX on Fed rate cut hopes, healthy spot demand; experts highlight key levels to watch

Gold price today: The rates of gold rose by almost 1% while silver rates jumped more than 2% in morning trade on the MCX on Monday, December 22, on increased US Fed rate cut speculations and healthy spot demand. MCX gold February futures were 0.77% up at ₹1,35,224 per 10 grams, while MCX silver March futures were 2.39% up at ₹2,13,412 per kg around 9:15 am, after hitting a record high of ₹2,13,844 per kg. Increased speculations that the US Federal Reserve will cut rates in January supported bullion prices, while healthy spot demand also fuelled buying activity in the futures market.

"Gold prices climbed to an all-time high of $4,380 per ounce on Monday, driven by expectations of further US interest rate cuts and escalating geopolitical tensions. Markets are currently pricing in two additional rate cuts by the Federal Reserve next year, following softer-than-expected US inflation data last week," said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

According to media reports, the US is monitoring another vessel near Venezuela after having seized two tankers this month. On the other hand, Ukraine struck a Russian tanker in the Mediterranean Sea for the first time.

Domestic spot gold prices have surged more than ₹55,000, or 73%, this year on concerns over global economic slowdown due to US tariffs, strong central bank buying, geopolitical tensions, and hopes of lower interest rates.

Global financial firm Goldman Sachs believes gold prices may jump by 14% to $4,900 per ounce by December 2026 in a base case largely due to high central bank ‍demand ⁠and Fed interest rate cuts.

Gold and silver: Key levels to watch

According to Trivedi, MCX gold February futures may rise to ₹1,36,000 per 10 grams as the trend is bullish in the world markets too.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $4,320 and $4,285 while resistance is at $4,400 and $4,425. Silver has support at $66.40 and $65.75, while resistance is at $67.20 and $68.

In INR, Kalantri said gold has support at ₹1,33,550 and ₹1,33,010 while resistance is at ₹1,35,350 and ₹1,35,970. Silver has support at ₹2,07,450 and ₹2,06,280, while resistance is at ₹2,09,810 and ₹2,10,970.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,355 and $4,320, while resistance is at $4,410 and $4,440 per troy ounce, and silver has support at $66.60 and $65.50, while resistance is at $68.20 and $69.10 per troy ounce in today’s session.

Jain said MCX gold has support at ₹1,33,660 and ₹1,33,000, and resistance is at ₹1,34,750 and ₹1,35,500, while silver has support at ₹2,06,600 and ₹2,05,000, and resistance is at ₹2,10,000 and ₹2,12,000.

"We suggest buying gold on dips around ₹1,33,800 and ₹1,33,400 range with a stop loss of ₹1,32,880 for the target of ₹1,34,500, ₹1,35,100, and ₹1,35,500 and buying silver on dips around ₹2,05,500 and ₹2,04,000 with a stop loss of ₹2,02,200 for the target of ₹2,08,000 and ₹2,10,000," said Jain.

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