Gold Prices Climb on Federal Reserve Rate Cut Expectations
Gold prices witnessed substantial gains during early trading hours on Thursday, 28 November, fueled by growing market anticipation of a US Federal Reserve rate cut at the upcoming December meeting. The precious metal's rally reflects investor confidence in more accommodative monetary policies from the American central bank.
Current Market Performance
MCX Gold December futures registered an increase of 0.54% to reach ₹1,26,180 per 10 grams at approximately 9:55 am. Simultaneously, MCX Silver December contracts demonstrated even stronger performance, climbing 0.89% to ₹1,63,909 per kg during the same trading period.
According to real-time data from India Bullions, the prices of 24-carat gold stood at ₹1,26,820 per 10 grams at 9:58 am on 28 November. The 22-carat variant traded at ₹1,16,252 per 10 grams, while silver prices (999 Fine) reached ₹1,64,750 per kg.
Historical Performance Analysis
Gold has demonstrated remarkable long-term growth, with prices soaring by an impressive 1,200% over the past two decades. From levels of ₹7,638 in 2005, the yellow metal has climbed to over ₹1,25,000 in 2025 (as of September data). This extraordinary journey includes positive annual returns in 16 out of these 20 years.
The current year has been particularly strong for gold investors, with prices gaining 56% on a year-to-date basis. Market analysts note that gold has appreciated in nearly every month this year, positioning the metal for its best annual performance since 1979. This outstanding achievement comes despite challenging economic conditions, including government shutdown impacts, as reported by Bloomberg.
City-Wise Gold Rates Across India
Retail gold prices vary across major Indian cities due to local factors and transaction costs. Here are the prevailing rates for 28 November:
Mumbai: 24-karat gold at ₹1,26,590/10 gm, 22-karat at ₹1,16,041/10 gm
Delhi: 24-karat gold at ₹1,26,300/10 gm, 22-karat at ₹1,15,775/10 gm
Kolkata: 24-karat gold at ₹1,26,350/10 gm, 22-karat at ₹1,15,821/10 gm
Chennai: 24-karat gold at ₹1,26,900/10 gm, 22-karat at ₹1,16,325/10 gm
Bengaluru: 24-karat gold at ₹1,26,620/10 gm, 22-karat at ₹1,16,068/10 gm
Hyderabad: 24-karat gold at ₹1,26,730/10 gm, 22-karat at ₹1,16,169/10 gm
Ahmedabad: 24-karat gold at ₹1,26,680/10 gm, 22-karat at ₹1,16,123/10 gm
Pune: 24-karat gold at ₹1,26,520/10 gm, 22-karat at ₹1,15,977/10 gm
Prospective buyers should note that jewellers typically add making charges, applicable taxes, and GST to these base prices, which may increase the final purchase amount significantly.
Market Outlook and Investment Considerations
The current gold rally appears fundamentally supported by shifting global monetary policy expectations. The Federal Reserve's potential rate cut in December could further weaken the US dollar, making gold more attractive to international investors. Historical data confirms gold's role as a reliable store of value during economic uncertainty.
With gold delivering consistent returns over two decades and showing exceptional performance this year, investors continue to view the precious metal as a crucial portfolio diversifier. However, market participants should remain aware of potential volatility and consult certified financial experts before making investment decisions.
