Gold up nearly 1% at Rs 1,30,590, silver continues to soar

Gold price today on December 1, 2025

Spot gold prices hovered around $4,239 an ounce for 24-carat purity on December 1, as investors priced in higher chances of a US Federal Reserve rate cut ahead of chairman Jerome Powell's remarks later in the day, expected to set the tone for the market.

In the domestic market, gold futures on the Multi Commodity Exchange (MCX) rose 0.84 percent to Rs 1,30,560 for 10 grams in the morning after ending  previous session at Rs 1,29,5041.

The increase in price can also be attributed to both increased demand for safe-haven assets and the anticipated increase in activity, particularly among traditional buyers during the ongoing wedding season.

"Recently, gold has demonstrated a slight strength because of the uncertainty in the global economy and continuing strong domestic demand.

“Gold prices have shown a gradual increase over the past few weeks, indicating that market participants remain moderately optimistic for ongoing increases in gold prices," said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA).

According to the Indian Bullion and Jewellers Association (IBJA), the price of yellow metal stood at Rs 1,26,591 for 10 grams of 999 purity on November 28.

Silver continues to soar

Silver continues to shine not just as a household essential but also as a key investment and industrial metal.

Its spot price hovered just above $57 an ounce on December 1, up 1.79 percent from the close on November 28.

On MCX, December silver futures stood at Rs 1,77,833 a kg at 10.41 am.

“Silver reaches a new all-time high, with increased predictions that the US Federal Reserve would further lower interest rates," the Augmont Bullion report on November 28 said.

According to CME FedWatch tool data, the likelihood of Fed lowering interest rates to 350 to 375 bps has risen to 87.4 percent from 71 percent a week ago.

A Fed interest rate cut typically has a positive impact on gold prices, primarily because the metal is a non-yielding asset that benefits from lower borrowing costs and economic uncertainty. Gold earns no interest, so high rates make yield-bearing assets such as bonds more attractive. An interest rate cut reduces this "cost" of holding gold, encouraging investors to buy in.