Factors driving gold, silver prices in India

Gold and silver prices rose in Wednesday’s (November 26's) futures trade, tracking strong global cues amid expectations of a US Federal Reserve interest rate cut next month.

On the Multi Commodity Exchange (MCX), December gold contracts gained ₹475, or 0.38%, to ₹1.25 lakh per 10 grams on a turnover of 7,926 lots. Silver futures for December delivery surged ₹1,388, or 0.89%, to ₹1.57 lakh per kilogram in 8,239 lots.

“Gold and silver prices jumped as delayed US economic data bolstered expectations of a December Fed rate cut,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.

Globally, Comex gold for December delivery rose $28.20, or 0.68%, to $4,193.40 per ounce, while silver advanced 1.03% to $51.61 per ounce.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that US retail sales in September grew just 0.2% after a stronger gain in August, indicating slower consumer demand.

Producer price index data also aligned with expectations, suggesting the Fed may have room to ease policy.

Markets now see over an 80% probability of a 25 basis points rate cut in December, up from around 50% last week.

However, Trivedi added that gold’s upside could remain limited amid easing geopolitical tensions, as Ukrainian authorities reportedly agreed to a roadmap to end the conflict with Russia, reducing safe-haven demand.

Ross Maxwell, Global Strategy Lead at VT Markets, noted that while bullish drivers—including rate cut expectations, a softer dollar, rising ETF allocations, and central bank buying—are largely priced in, fresh catalysts will be needed for the next leg higher.

Spot gold recently touched $4,141 per ounce, its strongest level since mid-November. Maxwell added that

gold remains best suited for measured allocation

within a diversified portfolio rather than short-term trading.

-With PTI inputs