Gold rates today rise marginally on MCX; what's driving the rally?

Gold rates today: Gold prices on Multi Commodity Exchange (MCX) rose marginally 0.25% to ₹1,40,228 on Monday, December 29. Gold prices climbed ₹570 in early trading on Monday, reaching an intraday high of ₹1,40,444 per 10 grams, and remained close to the record peak of ₹1,40,465 per 10 gram touched on Friday.

Meanwhile, in the international market, spot gold was down 0.4% at $4,512.74 per ounce, as of 0242 GMT, after hitting a record high of $4,549.71 on Friday. U.S. gold futures for February delivery lost 0.4% to $4,536.40 per ounce.

What's driving the gold prices on December 29, 2025?

According to market experts, the rally has been driven by supportive monetary conditions, de-dollarisation trends, and ongoing global trade tensions.

On the geopolitical front, US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelensky were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine, which could pressurise the precious metal.

Although central bank gold purchases have moderated from the previous levels seen over the past three years, buying interest remains consistent. Demand continues to be underpinned by portfolio diversification, currency-related worries, and expectations of additional interest rate cuts.

Furthermore, rate easing by the US Federal Reserve and further rate cut hopes have enhanced the appeal of gold and silver in 2025.

At the same time, reduced liquidity amid year-end holidays has magnified price swings, according to experts. They believe the factors that propelled gold prices higher this year are likely to persist into 2026, potentially driving a sharp rise in the precious metal.

“Precious metals continue to attract strong inflows as heightened global uncertainty, geopolitical risks, and central-bank actions influence portfolio positioning heading into the new year. Gold remains the preferred safe-haven asset, anchoring defensive allocations, while silver is increasingly emerging as the higher-beta outperformer of the current cycle, supported by a combination of risk-hedging demand and robust industrial demand amid supply constraints,” said Ponmudi R, CEO of Enrich Money.

Key levels to watch

According to Ponmudi R, MCX Gold futures are trading near all-time highs around ₹1,40,183, maintaining a powerful uptrend marked by higher highs and higher lows.

“Domestic prices continue to find support from global strength and rupee dynamics. A decisive breakout above ₹1,40,500 could accelerate the rally toward ₹1,45,000– ₹1,50,000 in the coming phase, while firm support is placed at ₹1,38,000– ₹1,36,400. The overall structure continues to favour buying on declines,” R said.

Meanwhile, Rahul Kalantri, VP Commodities, Mehta Equities, said that the yellow metal has support at $4470-4425 while resistance is at $4555-4570. In INR, gold has support at Rs1,38,550-1,36,310 while resistance is at Rs1,41,350-1,42,670.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.