Gold, Silver Prices Rise on Strong Global Cues Amid Hopes of Fed Rate Cut
Investors Eye US Fed Rate Cut Metals Near Multi-Week Highs
New Delhi, Nov 28: Gold and silver futures gained on Friday, boosted by firm global cues and growing market expectations that the US Federal Reserve may announce a rate cut next month.
On the Multi Commodity Exchange (MCX), December gold futures rose by Rs 596, or 0.47%, to Rs 1,26,100 per 10 grams on a turnover of 4,496 lots, while the February contract advanced Rs 669, or 0.52%, to Rs 1,28,336 per 10 grams in 10,370 lots. Silver also saw significant gains, with the December contract climbing Rs 1,183, or 0.73%, to Rs 1,63,650 per kg in 5,799 lots, and the March 2026 contract up Rs 1,373, or 0.83%, to Rs 1,67,360 per kg on 15,578 lots.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, said, “In the domestic market, metals traded steadily, reflecting mixed cues from Thursday as the US Thanksgiving holiday limited global trading activity.”
Internationally, Comex gold futures for December delivery gained USD 22.2, or 0.53%, to USD 4,187.4 per ounce, while silver rose 1.71% to USD 53.82 per ounce. Gold briefly touched USD 4,190 per ounce, and silver surpassed USD 54, approaching record highs.
Senior Research Analyst Jigar Trivedi of Reliance Securities noted that gold is nearing a five-week high, driven by strong expectations of a Fed rate cut. He added that comments from Fed officials and weak US economic data have fueled optimism for monetary easing, with market participants now pricing in an over 80% probability of a 25-basis-point rate reduction next month up from 30% a week ago.
Trivedi also highlighted that investors are factoring in three additional rate cuts by the end of 2026, supporting gold and silver for their strongest annual performance since 1979, aided by central bank purchases and robust inflows into exchange-traded funds (ETFs).
