Gold inches up as dollar softens; silver eases after hitting all-time highs

Gold and silver showed a mixed trend on Monday (December 8), with gold inching up on a weaker US dollar while silver eased after touching all-time high last week. The movement comes as markets await the US Federal Reserve’s policy decision, with expectations of a rate cut dominating sentiment.

Spot gold gained 0.3% to $4,212.70 per ounce, supported by the dollar hovering near one-month lows. US futures were steady at $4,241.30 an ounce.

Market pricing indicates an 88% probability of a 25-basis-point cut at the Fed’s December 9–10 meeting, following soft labour indicators and slowing consumer spending.

In India, bullion remained firm, with 24K gold at ₹13,042 per gram, while recent trade data shows prices nearing ₹13.04 lakh per 10 grams. Silver stood at ₹189.90 per gram.

Silver slipped 0.4% to $58.06 per ounce, after scaling a record $59.32 an ounce on Friday (December 5). Despite the mild correction, the metal has nearly doubled in 2025, supported by tightening supply, strong investor interest and rising industrial consumption.

Ross Maxwell, Global Strategy Lead at VT Markets, said gold remains well-positioned for further gains as expectations of a Fed rate cut stay firm.

“If gold holds near its support levels, a rebound seems likely,” he said, noting that domestic 24K prices have climbed toward ₹1.30 lakh per 10 grams.

On silver, Maxwell said the metal has outpaced gold this year due to strong demand and supply constraints. He added that silver’s industrial role—spanning solar and electronics—along with safe-haven and speculative interest, may keep its near-term upside stronger than gold’s.

Rahul Kalantri, VP Commodities at Mehta Equities, said bullion saw heightened volatility last week but held within a broad range ahead of the FOMC meeting.

He noted that delivery shortages and gains in base metals supported silver’s rally, while a rebound in US bond yields briefly pressured gold. A weaker rupee also contributed to firm domestic prices.

Outlook

Analysts said bullion’s near-term direction will hinge on the Fed’s communication. Gold continues to act as a medium-term hedge, provided it respects key support zones. Silver, meanwhile, may continue to outperform if industrial demand remains strong and expectations of monetary easing persist.

-With Reuters inputs