Gold prices commenced the trading session on Friday with a decline, as the December futures contract on MCX decreased by Rs 305 or 0.25%, settling at Rs 1,21,203 per 10 grams. This follows a 4.5% increase in bullion this month; however, traders are adjusting their expectations for a December rate cut in light of recent hawkish comments from U.S. Federal Reserve Chair Jerome Powell. Silver prices mirrored this trend, as the white metal commenced on a subdued note, decreasing by Rs 787 or 0.53% in early trading, now standing at Rs 1,48,053/kg. Gold prices experienced a modest increase on Friday, positioning themselves for a third consecutive monthly gain. This uptick was driven by bargain hunting and the anticipation of a Federal Reserve interest rate cut, which bolstered demand. Meanwhile, investors were processing a tentative trade agreement between China and the U.S. Spot gold experienced an increase of 0.3%, reaching $4,034 per ounce, as of 0109. U.S. gold futures for December delivery decreased by 1.1%, settling at $3,955 per ounce.
Bullion has experienced an increase of 4.5% thus far this month. Market participants have reduced their expectations for a rate cut by the Federal Reserve at its upcoming policy meeting on December 10, following comments made by Fed Chair Jerome Powell. Current market expectations indicate a 74.8% likelihood of a 25-basis-point reduction by the Federal Reserve in December, a notable decrease from the 91.1% probability observed just a week prior, as per reports. On Thursday, gold and silver concluded the trading session with gains in both domestic and international markets. The December futures contract for gold concluded at Rs 1,21,508 per 10 grams, reflecting an increase of 0.70%. Meanwhile, the December futures contract for silver settled at Rs 1,48,840 per kilogram, marking a rise of 1.89%.
Gold and silver continued to rise during a session marked by significant volatility, even in the face of hawkish remarks from the Federal Reserve regarding December’s policy rate adjustments and the robustness of the dollar index. The dollar index has surpassed the 99 threshold and is currently trading at three-month highs following the results of the Federal Reserve meeting. Today, the U.S. Dollar Index was hovering near the 99.46 mark, falling 0.07 or 0.07%. The ECB maintained its current interest rates, which may limit the appreciation of the dollar index while providing support for gold and silver prices.
“According to the WGC, the unprecedented acquisition of 220 metric tonnes by global central banks in the third quarter of 2025, representing a 28% increase from the previous quarter, is also bolstering precious metal prices,” stated Manoj Kumar Jain. “Gold is maintaining its critical threshold of $3,870, while silver is sustaining its support level of $46.50 per troy ounce on a closing basis. We anticipate that gold and silver prices will exhibit volatility during today’s session, influenced by fluctuations in the dollar index, European inflation data, and updates regarding the U.S.-China trade deal. Gold is projected to trade within the range of $3,945–4,084 per troy ounce, while silver is expected to fluctuate between $47.70–49.50 per troy ounce during today’s session.”