Gold prices witnessed a significant surge on Wednesday, continuing their upward trajectory in both Indian and international markets. The rally was powered by a combination of a sharply weakening Indian rupee and growing anticipation that the United States Federal Reserve will soon announce a cut in interest rates, boosting the appeal of the non-yielding precious metal.
Domestic Market Driven by Rupee Depreciation
In the domestic market, a key factor pushing gold prices higher was the rupee's performance. The Indian currency slumped to a historic low against the US dollar, making dollar-denominated imports like gold more expensive. This depreciation directly contributed to higher local bullion rates, as explained by market analysts.
On the Multi Commodity Exchange (MCX), gold futures for the February 2026 contract jumped by Rs 1,007, or 0.78%, to settle at Rs 1,30,766 per 10 grams. This marked a fresh high in the ongoing rally for the precious metal.
Global Sentiment Firms Up on Fed Expectations
The bullish sentiment was mirrored in international markets. Both gold and silver futures gained strength as investor confidence grew that the US Federal Reserve is poised to announce an interest rate reduction in its upcoming meeting next week. Lower interest rates typically diminish the opportunity cost of holding gold, making it more attractive.
At the Comex exchange, gold for December delivery advanced by $29.3, or 0.7%, to reach $4,215.9 per ounce. The more active February 2026 contract saw an even sharper rise, climbing by $39.3, or 0.93%, to $4,260.1 per ounce.
City-Wise Gold Rates in India (22K & 24K)
Here is a snapshot of gold prices across major Indian cities for today:
- Delhi: 24K gold at Rs 13,073/g; 22K at Rs 11,985/g.
- Mumbai: 24K gold at Rs 13,058/g; 22K at Rs 11,970/g.
- Bengaluru: 24K gold at Rs 13,058/g; 22K at Rs 11,970/g.
- Chennai: 24K gold at Rs 13,157/g; 22K at Rs 12,060/g.
- Kolkata: 24K gold at Rs 13,058/g; 22K at Rs 11,970/g.
- Hyderabad: 24K gold at Rs 13,058/g; 22K at Rs 11,970/g.
- Ahmedabad: 24K gold at Rs 13,063/g; 22K at Rs 11,975/g.
- Jaipur: 24K gold at Rs 13,073/g; 22K at Rs 11,985/g.
- Bhubaneswar: 24K gold at Rs 13,058/g; 22K at Rs 11,970/g.
- Kanpur: 24K gold at Rs 13,073/g; 22K at Rs 11,985/g.
The simultaneous pressure from a weak domestic currency and optimistic global monetary policy signals created a perfect storm for gold's ascent. Investors are now closely watching the Federal Reserve's decision and the rupee's movement for further direction in bullion markets.
