Gold Price Hit-All Time on December 22 on Rate Cut by US Fed: World Gold Council Expects a Suprise in 2026

Gold prices hit a record high on Monday, December 22, driven by expectations of further US Federal Reserve rate cuts, strong safe-haven demand, and a weaker US dollar.

Spot gold surged to an all-time peak of $4,383.73 per ounce, continuing its impressive rally in 2025. The precious metal has climbed about 67% this year, fueled by geopolitical tensions, trade uncertainties, aggressive central bank purchases, and growing confidence that global interest rates will decline.

In India, gold prices mirrored this global trend. On the same day, 24-carat gold traded at ₹13,417 per gram, 22-carat at ₹12,299 per gram, and 18-carat at ₹10,063 per gram.

Factors Behind Gold Price Surge

This surge followed the US Federal Reserve’s quarter-point rate cut last week, which strengthened market expectations for looser monetary policy. Investors now anticipate two more rate cuts in 2026, increasing the appeal of non-yielding assets like gold.

Additionally, the softer dollar has helped boost gold prices by making it more affordable for buyers using other currencies. The dollar index remains under pressure amid expectations of prolonged monetary easing in the US.

Gold Outlook for 2026

According to the World Gold Council, ongoing geoeconomic uncertainties will shape gold’s outlook for 2026. Gold prices may stay rangebound if current macroeconomic conditions continue. However, 2026 could bring surprises:

• If economic growth slows and interest rates drop further, gold may see moderate gains.
• In a more severe global downturn marked by rising risks, gold could perform strongly.
• Conversely, if policies from the Trump administration successfully boost economic growth and reduce geopolitical tensions, higher interest rates and a stronger US dollar may push gold prices lower.

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