Gold prices moved higher in Indian markets on Wednesday, mirroring gains in international markets as renewed optimism about potential US Federal Reserve interest rate cuts next month boosted the precious metal's appeal.
Domestic Market Performance
On the Multi Commodity Exchange (MCX), December gold futures climbed by Rs 328, or 0.26 percent, to settle at Rs 1,24,241 per 10 grams. The trading session witnessed substantial activity with a business turnover of 12,868 lots. The longer-dated February 2026 gold contract also registered gains, increasing by Rs 171 to trade at Rs 1,25,748 per 10 grams.
Silver demonstrated even stronger momentum, with December futures surging by Rs 2,198 to reach Rs 1,56,885 per kilogram. The white metal's robust performance outpaced gold, reflecting increased investor interest across the precious metals spectrum.
International Market Trends
Global markets set the tone for domestic movements, with Comex gold rising 0.13 percent to $4,121.80 per ounce. Silver posted more impressive gains internationally, advancing 1.55 percent to $51.53 per ounce.
Market analysts pointed to multiple factors driving the bullish sentiment. Expectations of a resolution to the prolonged US government shutdown enhanced gold's traditional role as a safe-haven asset. Simultaneously, growing anticipation of Federal Reserve policy easing combined with moderating inflation pressures in the United States created favorable conditions for precious metals.
City-Wise Gold Rates Across India
Retail gold prices varied across major Indian cities, though most markets witnessed declines compared to previous trading sessions:
Delhi: 24K gold traded at Rs 12,566 per gram (down Rs 77), while 22K gold cost Rs 11,520 per gram (down Rs 70).
Mumbai: 24K gold stood at Rs 12,551 per gram (down Rs 33), with 22K gold at Rs 11,505 per gram (down Rs 30).
Chennai: The city recorded the highest rates at Rs 12,656 per gram for 24K gold (down Rs 108) and Rs 11,600 for 22K gold (down Rs 100).
Other major cities including Bengaluru, Kolkata, Hyderabad, Ahmedabad, Jaipur, Bhubaneswar, Pune, and Kanpur showed similar pricing patterns with marginal variations.
Annual Performance Outlook
Analysts noted that gold remains positioned for its strongest annual performance since 1979, supported by the dual tailwinds of anticipated policy easing and receding inflation concerns in the world's largest economy. The combination of these macroeconomic factors continues to make gold an attractive investment option for Indian investors seeking stability amid global economic uncertainties.
The precious metal's resilience in the face of changing economic conditions underscores its enduring value as both a safe-haven asset and inflation hedge, particularly relevant in the current market environment where interest rate expectations dominate investor sentiment.
