Gold prices have risen due to increased demand for safe-haven assets and heightened activity from traditional buyers during the wedding season. As of December 1, spot gold was priced around $4,239 per ounce, influenced by expectations of a potential US Federal Reserve rate cut. In the Indian market, gold futures on the Multi-Commodity Exchange (MCX) climbed 0.84% to Rs 1,30,560 for 10 grams.
This uptick reflects both global economic uncertainties and strong domestic demand, according to the Vice President of the India Bullion & Jewellers Association (IBJA). Additionally, silver prices have surged, reaching over $57 per ounce, and MCX silver futures were at Rs 1,77,833 per kg.
Factors contributing to silver’s rise include high demand and predictions of further interest rate cuts by the Fed, which historically boost gold prices, as lower rates diminish the opportunity cost of holding non-yielding assets like gold. Recent CME FedWatch data indicates an 87.4% chance of rates being lowered to between 350 and 375 bps, up from 71% a week prior.
