Gold Price Near 7-Week High as Fed Rate Cut Hopes and Soft Dollar Boost Prices.

Gold Near 7-Week High as Fed Rate Cut Hopes and Soft Dollar Boost Prices; India Gold at ₹1.31 Lakh

Gold prices held close to a seven-week high on Friday, supported by expectations of more US Federal Reserve rate cuts in 2025 and a weaker dollar. Silver also remained firm, staying near Thursday’s record levels due to strong industrial demand.

In India, 24-carat gold rose by ₹10 to ₹1,30,760 per 10 grams, according to GoodReturns. 22-carat gold also gained ₹10 to ₹1,19,860. Silver prices increased by ₹100 per kg, reaching ₹2,01,100.

Gold price Across major Indian cities, 24-carat gold prices stood at:

  • Mumbai & Kolkata: ₹1,30,760

  • Delhi: ₹1,30,910

  • Chennai: ₹1,31,470

For 22-carat gold:

  • Mumbai, Kolkata, Bengaluru, Hyderabad: ₹1,19,860

  • Delhi: ₹1,20,010

  • Chennai: ₹1,20,510

Festive buying and a weak rupee helped support local prices despite only small day-to-day changes.

Globally, gold saw mild profit-taking. Spot gold slipped 0.2% to $4,277.64 per ounce in early trade, while US February futures edged down to $4,307.80. Even so, gold is on track to gain nearly 1.8% this week.
Silver held at $63.57, after touching a record $64.31 on Thursday, and is set for a strong 9% weekly rise, driven by demand from the solar and electronics sectors.

A declining dollar — heading for its third straight weekly fall — made precious metals more attractive for global buyers. Analysts expect further strength, with ANZ’s Soni Kumari noting that markets are betting on two Fed rate cuts in 2025, despite the central bank signalling only one.

The Fed recently delivered its third 25-basis-point cut this year, and Chair Jerome Powell said future moves will depend on how inflation and the job market evolve. Last week’s spike in US jobless claims hints at cooling labour conditions.

Lower interest rates generally boost gold, as it is a non-yielding asset. Markets will now focus on next week’s US non-farm payrolls report for more clues.

Domestic and global analysts expect the bullish trend to continue.
Mehta Equities’ Rahul Kalantri said, “Gold and silver remain strong heading into 2025, supported by global factors and a weak rupee keeping Indian prices elevated.”

IBJA Vice President Aksha Kamboj added that safe-haven demand, slow global growth, and central bank buying could push gold higher in 2026. For silver, rising industrial use and the clean-energy push are expected to support further gains.

Kalantri highlighted key levels:

  • Gold support: $4,230 & $4,185; Resistance: $4,310 & $4,345

  • Silver support: $63 & $62.35; Resistance: $64.40 & $64.95

In India, he noted:

  • Gold support: ₹1,31,450 & ₹1,30,550; Resistance: ₹1,33,150 & ₹1,34,900

  • Silver support: ₹1,96,950 & ₹1,95,200; Resistance: ₹2,00,550 & ₹2,01,700

With supportive global conditions and steady demand, analysts say the precious-metals rally could extend well into 2026.

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