Comex gold is holding above its 20-day exponential moving average near $4,200, with the next resistance zone opening toward $4,350. In India, MCX gold broke out to lifetime highs near ₹1,32,776, with support at ₹1,31,400.
| Photo Credit:
iStockphoto
Gold extended its rally to a seven-week high above $4,275 per ounce on Friday, while silver climbed toward a record peak of $64.31 on Comex, following the US Federal Reserve’s 25 basis point interest rate cut to 3.50 per cent-3.75 per cent.
The precious metals surge came as Chair Jerome Powell’s remarks were interpreted as modestly dovish, prompting traders to increase expectations for further monetary easing. The Fed also announced plans to purchase approximately $40 billion in short-dated Treasury bills to ease money market strains, a move expected to cap upward pressure on short-term yields and support bullion prices.
Gold broke past the key near-term resistance level of $4,240, gaining more than 1 per cent in the session. Comex gold is holding above its 20-day exponential moving average near $4,200, with the next resistance zone opening toward $4,350. In India, MCX gold broke out to lifetime highs near ₹1,32,776, with support at ₹1,31,400.
Silver outperformed gold in both global and domestic markets, decisively breaking above the $64 level to reach a new 52-week high. The white metal’s rally was supported by supply squeeze concerns, stimulus news from China, and increased ETF inflows. Comex silver broke above its upper channel resistance near $63.80, with analysts expecting the metal to maintain positive momentum as long as it holds above $60.
“Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows,” said Hareesh V, Head of Commodity Research at Geojit Investments Limited. He noted that the post-cut weakening of the U.S. dollar further supports prices by making metals more affordable for global buyers.
The dollar index dropped to a two-month low, adding to bullion’s appeal. Domestic prices in India received additional support from rupee depreciation against the dollar.
Published on December 12, 2025
