Gold prices surged over 1% in early MCX trades on Tuesday (November 25), supported by expectations of a US Federal Reserve rate cut in December and strong domestic demand during the wedding season. Around 9:15 am, MCX Gold December futures were up 1% at ₹1,25,106 per 10 grams, while MCX Silver December futures rose 1.34% to ₹1,56,551 per kg.
Globally, gold gained nearly 2% in the previous session as hopes for lower US interest rates boosted appetite for safe-haven assets. Reuters cited New York Fed President John Williams, who indicated that a rate cut may come soon, arguing it would not hinder progress on inflation. Market expectations for a December cut have surged to 81%, up from 40% last week, according to the CME FedWatch Tool.
Since gold offers no interest, it tends to become more attractive when rates fall. Investors are now watching delayed US economic data, including retail sales and jobless claims.
IBJA’s Aksha Kamboj said domestic gold prices are supported by seasonal jewellery demand and its role as a hedge against inflation and currency risk.
Analysts highlighted key support and resistance levels for gold and silver across global and MCX markets, with suggestions to wait for pullbacks before taking fresh long positions.
