Gold prices experienced a significant upward movement during early trading sessions on Tuesday, November 25, as market sentiment turned bullish amid growing anticipation of monetary policy easing from the United States Federal Reserve.
Substantial Gains in Precious Metals
The Multi Commodity Exchange (MCX) witnessed robust buying activity in gold contracts during the morning deals. December gold futures on MCX climbed by exactly 1 percent, reaching an impressive price point of ₹1,25,106 per 10 grams around 9:15 am. This marked one of the most substantial single-day gains witnessed in recent trading sessions.
Silver Outperforms Gold
The positive momentum extended to other precious metals as well, with silver demonstrating even stronger performance. MCX Silver December contracts surged by 1.34 percent during the same trading period, reaching ₹1,56,551 per kilogram. The white metal's outperformance compared to gold highlighted broad-based investor interest in precious metals as a whole.
Federal Reserve Expectations Drive Rally
The primary catalyst behind this precious metals rally stems from growing market expectations that the US Federal Reserve might implement rate cuts as early as December. Market analysts and traders have been closely monitoring signals from the Federal Reserve, with many anticipating a shift toward more accommodative monetary policy. Lower interest rates typically diminish the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.
This developing story continues to evolve as global economic indicators and central bank communications provide further clarity on the direction of monetary policy. Market participants are advised to monitor upcoming economic data releases and Federal Reserve announcements for additional trading cues.
