Gold prices in India and global markets saw strong buying last week as expectations of a US Federal Reserve rate cut grew stronger. This momentum helped MCX gold extend its monthly gains for the fourth consecutive time. On Friday, gold futures for February 2026 on the MCX settled ₹1,932 higher, or 1.51%, at ₹1,29,599 per 10 grams—just about ₹2,700 short of its all-time high of ₹1,32,294 reached on October 17, 2025.
Analysts say the surge is driven by an 87% probability of a 25-basis-point Fed rate cut next month, alongside a weakening US dollar and political uncertainty under the Trump administration. Sugandha Sachdeva of SS WealthStreet noted that dovish signals from Fed officials and mixed US economic data—strong jobs numbers but weaker retail sales and consumer sentiment—have strengthened the case for easing.
In India, heavy wedding-season demand from nearly 45–50 lakh ceremonies is also boosting prices. However, Sachdeva cautioned that any progress in the Russia–Ukraine peace talks could limit sharp gains, though geopolitical tensions still support gold as a safe haven.
She added that if domestic prices remain above ₹1,30,000 per 10 grams, gold could target new highs near ₹1,34,000.
