Gold prices increased by ₹2,209 per 10 grams to ₹1,28,800 on Monday against ₹1,26,591 logged on Friday on the back of a firm trend in the global markets.
Spot gold surged to a two-week high of $4,261 an ounce on Friday as softer US economic data strengthened confidence that the Federal Reserve will move ahead with a 25-bps rate cut on December 10.
Silver also rose sharply to ₹1,75,180 per kg from ₹1,65,359 on the back of improved industrial demand.
Rising for the sixth consecutive session, spot silver gained 2 per cent to hit a lifetime high of $57.85 per ounce in the global markets. Over the past week, the white metal has advanced 15.7 per cent and has doubled so far in 2025, rising 100 per cent from $28.97 per ounce on December 31, 2024.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities said cooling retail sales, a modest uptick in producer inflation, accelerating private-sector job losses, and US consumer confidence falling to a seven-month low all reinforced the dovish tone already echoed by several Fed officials.
The only positive surprise was initial jobless claims, which rose to 216,000, below expectations and the lowest since April, suggesting continued labour-market resilience despite broader signs of cooling, she said.
This did not shift rate-cut expectations, with CME data showing markets pricing in nearly an 87 per cent probability of a December cut, he said.
Jateen Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities, said gold has traded strongly and is inching closer to its all-time high of ₹1,32,250 recorded before Diwali.
With Fed rate-cut expectations strengthening and US debt levels hitting near-historic peaks, safe-haven demand remains robust, he added.
The pace of recovery in gold continues to surprise on the upside, even as Russia-Ukraine peace hopes emerge — reflecting strong positioning by global central banks and institutional buyers, Trivedi said.
Published on December 1, 2025
