Precious metals witnessed a notable upward movement in early trading on December 1, with both gold and silver posting significant gains on the Multi Commodity Exchange (MCX). The rally comes amid shifting global economic indicators and market expectations regarding monetary policies.
Current Market Performance
Gold futures for February 2025 delivery climbed by 0.42 percent, reaching ₹65,350 per 10 grams on the MCX. Meanwhile, silver contracts followed the bullish trend, with March 2025 futures advancing by 0.67 percent to ₹78,850 per kilogram. The simultaneous rise in both precious metals indicates strong investor interest in safe-haven assets.
In international markets, spot gold demonstrated resilience, trading at $2,327.89 per ounce. Analysts attribute this stability to ongoing economic uncertainties and the precious metal's traditional role as a store of value during volatile market conditions.
City-Wise Gold Rates Across India
The price surge has directly impacted retail markets across major Indian cities. 24-carat gold is currently trading at ₹6,730 per gram, while the more popular 22-carat variant is available at ₹6,170 per gram. These rates vary slightly depending on local taxes and making charges across different regions.
Major metropolitan centers including Mumbai, Delhi, Chennai, and Kolkata have all reported increased trading activity in gold jewelry and investment products. The consistent demand during the wedding season has provided additional support to prices, despite the recent upward movement.
Market Drivers and Future Outlook
Several factors are contributing to the current bullish trend in precious metals. Market participants are closely monitoring the Reserve Bank of India's (RBI) monetary policy stance and global central bank actions, particularly the US Federal Reserve's position on interest rates.
The anticipation of potential rate cuts in 2025 has created a favorable environment for non-yielding assets like gold and silver. Historically, lower interest rates reduce the opportunity cost of holding precious metals, making them more attractive to investors.
Geopolitical tensions and economic uncertainties continue to drive safe-haven demand, while the ongoing festive and wedding season in India has sustained physical buying interest. Market analysts suggest that the current trend might continue in the short to medium term, depending on incoming economic data and central bank communications.
Investors and consumers are advised to monitor market developments closely, as precious metal prices remain sensitive to global economic indicators and policy announcements. The coming weeks are expected to provide clearer direction as more economic data becomes available and central banks clarify their policy trajectories.
