Gold price commenced the day on a positive note in early trading on Thursday, December 11, in the wake of the US Federal Reserve’s third consecutive interest rate reduction. The action was largely consistent with forecasts; however, the trajectory of policy continues to exhibit ambiguity. February gold futures on the Multi Commodity Exchange commenced at Rs 1,30,259 per 10 grams, reflecting an increase of Rs 463 or 0.36%. Silver March futures reached a new peak, opening at Rs 1,92,565/kg, an increase of Rs 3,830 or 2%.
In the international market, spot gold experienced an increase of 0.7%, reaching $4,236.57 per ounce, while US gold futures for February delivery concluded at $4,224.70, reflecting a decline of 0.3%. Silver continued its remarkable ascent, with spot prices reaching an unprecedented $61.85. The metal has experienced a remarkable increase of 113% this year, driven by robust industrial demand, diminishing inventories, and its recent designation as a critical mineral in the United States. The Fed’s action indicates a calculated shift towards policy easing; however, the anticipation of merely one additional cut in 2026 underscores the central bank’s prudence, as certain policymakers exhibit hesitance to adopt a more aggressive stance. Fed Chair Jerome Powell highlighted potential distortions in recent data attributed to the government shutdown, which could exaggerate indications of weakness.
“Gold prices rose to around $4,230/oz, gaining for a third consecutive session and approaching October levels when they hit a record, following the FOMC’s expected rate cut. Fed Chair Jerome Powell indicated that the central bank is contemplating whether to decelerate, implement modest cuts, or execute more substantial reductions in interest rates, with no intentions of increasing them. The US central bank also maintained its forecast for a single rate cut in 2026, though a slight change in its statement suggested greater uncertainty over the timing and size of future reductions,” according to Jigar Trivedi.
“Policymakers have adjusted their growth projections upward while simultaneously reducing inflation expectations for the years 2025 and 2026. In the interim, geopolitical risks have bolstered the metal’s status as a safe haven, highlighted by the US’s interception of a sanctioned tanker in proximity to Venezuela and the persistent ambiguity surrounding the Russia-Ukraine peace negotiations. MCX Gold February futures are expected to remain under pressure due to profit booking, with Rs 1,29,000/10g identified as intraday support,” he added.