Gold and silver prices in India witnessed a decline on Tuesday, December 2, 2025, as investors opted to book profits following a significant rally in the previous session. The pullback comes ahead of crucial remarks from the US Federal Reserve Chair, which are expected to provide cues on future interest rate movements.
Domestic Market Sees Correction
On the Multi Commodity Exchange of India (MCX), gold futures for February expiry opened lower at ₹1,30,109 per 10 grams. This marked a drop from its previous closing level of ₹1,30,652. The retreat brought the precious metal closer to the ₹1.30 lakh psychological mark.
Similarly, silver prices on MCX opened weaker at ₹1,80,701 per kilogram, compared to the prior close of ₹1,82,030. This represented a decline of more than 1.5% for the white metal, pushing it below the ₹1.81 lakh threshold.
Global Cues and Investor Sentiment
The domestic movement mirrored the trend in international markets. Spot gold prices edged 0.2% lower to $4,222.93 per ounce after touching a six-week peak on Monday, December 1. US gold futures also declined by 0.4% to $4,256.30 per ounce.
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, the dip was driven by profit-taking. "Gold fell as investors took profits after prices reached a six-week peak, amid mounting expectations of a US interest rate cut next week," Trivedi stated. He added that investor focus has now shifted to Fed Chair Jerome Powell's upcoming remarks for further clues on the central bank's monetary policy trajectory.
Economic Data Fuels Rate Cut Expectations
The market's anticipation of a rate cut is supported by recent economic indicators. Traders are currently pricing in an 88% probability of a 25 basis points reduction at the Federal Reserve's next meeting. This expectation has been reinforced by weak US economic data and dovish commentary from several Fed officials.
A key data point adding pressure is the contraction in the US manufacturing sector, which persisted for the ninth consecutive month in November. This ongoing weakness increases the argument for the Fed to adopt a more accommodative policy stance.
Price Outlook and Analyst View
Looking ahead, analysts see potential for further near-term consolidation. Jigar Trivedi expects the MCX gold price for February expiry may test the ₹130,000 per 10 grams level. The market's direction in the coming sessions will heavily depend on the tone set by the Federal Reserve and subsequent global economic data releases.
Disclaimer: The views and recommendations mentioned are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
