Gold prices rose by ₹962 per 10 grams to ₹1,26,081 on Wednesday, compared to the previous closing price of ₹1,25,119. This increase follows a bullish trend in global markets and a depreciation of the Indian rupee against the dollar.
According to data from the Indian Bullion and Jewellers Association, gold prices have gained ₹3,520 per 10 grams over the last three trading sessions. Globally, gold prices climbed by more than one percent to reach a near two-week high, buoyed by favorable US economic data, which has bolstered expectations for a Federal Reserve interest rate cut next month. A reduction in Fed rates typically enhances investor interest in non-yielding assets like bullion.
In the global market, spot gold traded up one percent at $4,172 an ounce, marking its highest level since November 14. Meanwhile, US gold futures for December delivery rose by 0.7 percent to $4,169 an ounce.
Prithviraj Kothari, President of the India Bullion and Jewellers Association and Managing Director of RiddiSiddhi Bullions, noted that the upward movement in gold prices is driven by hopes for a Federal Reserve rate cut following dovish statements from Fed governors. These remarks have revived expectations for a December rate cut, even in the face of a strong dollar.
Fed Governor Christopher Waller indicated on Tuesday that the poor state of the employment market could justify another quarter-point rate cut in December. However, he emphasized that further action would depend on forthcoming economic data, which has been hampered by a government shutdown.
Gold prices have been fluctuating between $4,000 (approximately ₹1,21,000) and $4,200 (around ₹1,27,000). Kothari advised traders to buy on dips near support levels and sell on rallies against resistance levels.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, remarked that the recent dovish comments from Fed officials have increased market expectations for a 25 basis point cut to over 80 percent.
In other developments, the dollar index fell below 100, which provided additional support for bullion prices. However, gold’s upward momentum faced limitations due to reduced geopolitical risks, particularly after reports indicated that Ukrainian authorities have agreed to a roadmap for resolving the conflict with Russia.
On the physical gold market front, Kedia Commodities reported a significant decline in China’s gold imports via Hong Kong, which dropped by 64 percent in October. Total imports via Hong Kong amounted to 30 tonnes, reflecting a 17 percent month-on-month decrease. Swiss gold exports to China also experienced a dramatic decline of 93 percent as record-high prices dampened demand. Additionally, China’s value-added tax adjustment for gold purchases effective November 1 is expected to raise costs for jewelry and industrial buyers, although the People’s Bank of China continues to increase its reserves, reaching 74.09 million ounces for the twelfth consecutive month.
Published on November 26, 2025.
