Precious metals witnessed significant upward movement in the domestic futures market on Friday morning, November 28, driven by robust spot demand and growing anticipation of monetary policy easing from the US Federal Reserve.
Market Performance Details
Gold December futures on the Multi Commodity Exchange (MCX) showed strong momentum, trading 0.39% higher at ₹1,25,999 per 10 grams around 9:05 am. The bullish trend extended to silver as well, with December contracts climbing 0.85% to reach ₹1,63,849 per kilogram during the same trading period.
Key Drivers Behind the Rally
The price surge in both gold and silver can be attributed to two primary factors. Firstly, healthy spot demand provided fundamental support to the markets. Secondly, and more significantly, growing expectations of a rate cut by the US Federal Reserve in December created favorable conditions for precious metals, which typically perform well in low interest rate environments.
Market Outlook and Implications
This positive movement indicates renewed investor confidence in precious metals as safe-haven assets. The market sentiment remains cautiously optimistic as traders closely monitor the Federal Reserve's upcoming policy decision. Analysts suggest that sustained momentum will depend on the actualization of the expected rate cut and continued strong domestic demand.
Investors should note that market conditions can change rapidly, and individual circumstances may vary. It's always advisable to consult with certified financial experts before making any investment decisions regarding gold, silver, or other commodities.
