On Monday, gold and silver prices witnessed a notable surge in both Indian and global markets, capturing the attention of investors and consumers alike. The Multi Commodity Exchange (MCX) recorded strong gains in the futures market for both precious metals, while spot prices in major Indian metropolitan areas also traded at elevated levels. This rally comes amidst global economic uncertainties and expectations surrounding the US Federal Reserve's monetary policy.
Gold's Performance in the Futures Market
As of 10:58 AM on Monday, the Multi Commodity Exchange (MCX) saw a significant jump of 0. 88 percent in the futures price of gold for the February delivery contract compared to the previous session, while with this increase, gold prices reached ₹1,34,801 per 10 grams. This upward movement reflects a growing trend among investors to view gold as a safe-haven asset, especially in an environment of global economic instability. The continuous rise in gold prices indicates strong demand in the market, which could further push prices higher in the near future.
Sharp Increase in Silver Prices
Alongside gold, silver also demonstrated a strong performance in the futures market. The price of silver for the March delivery contract recorded a substantial gain of 1. 46 percent, reaching ₹1,95,659 per kilogram. This sharp increase in silver prices could be driven by both industrial and investment demand. Silver is often considered a safe investment alongside gold, and its industrial utility also influences its prices, while market analysts believe that in the current economic scenario, there could be further growth in the demand for silver.
Global Gold Market Status
In the global market, gold prices also rose on Monday, reaching approximately $4,320 per ounce. This level is quite close to an all-time high, indicating strong global demand for gold. According to tradingeconomics, investors are closely monitoring key economic data expected from the US this week. These figures will provide further clarity on the future direction of the Federal Reserve's interest rates, which will directly impact gold prices. Amidst global economic uncertainties and geopolitical tensions, gold remains a. Preferred safe-haven investment, leading to sustained demand and price appreciation.
Federal Reserve's Monetary Policy and Disagreements
US economic data has a profound impact on global gold prices. Specifically, the November jobs report is expected on Tuesday (December 16), followed by inflation figures later in the week. These data points will play a crucial role in determining market direction, while if the jobs report and inflation figures come in weaker than expected, it could increase pressure on the Federal Reserve to cut interest rates further, thereby boosting gold prices. Conversely, strong economic data might prompt a more hawkish stance from the Fed, potentially putting downward pressure on gold.
Last week, the Federal Reserve cut interest rates by 25 basis points for the third time this year, while however, this decision wasn't unanimous, as three policymakers opposed it. On top of that, disagreements among policymakers were observed regarding the prospects of further rate cuts in 2026. These internal divisions within the Fed create uncertainty in the market, prompting investors to seek safe-haven assets, with gold being a primary choice. Interest rate cuts tend to weaken the dollar, making dollar-denominated gold cheaper for holders of other currencies and increasing its demand.
Spot Gold Prices in Major Cities
According to goodreturns, spot gold prices in India's major metropolitan cities also showed an increase on Monday. In Delhi, 24-carat gold was priced at ₹13,488 per gram, 22-carat gold at ₹12,365 per gram, and 18-carat gold at ₹10,120 per gram. In Mumbai and Kolkata, 24-carat gold was recorded at ₹13,473 per gram,. 22-carat gold at ₹12,350 per gram, and 18-carat gold at ₹10,105 per gram. Bengaluru also saw similar prices, while chennai recorded slightly higher prices, with 24-carat gold at ₹13,593 per gram, 22-carat gold at ₹12,460 per gram, and 18-carat gold at ₹10,400 per gram. These figures indicate that gold demand remains solid across the country, with both investors and consumers reacting to the prevailing market conditions.
Outlook for Investors
Currently, both gold and silver are experiencing an upward trend,. Driven by global economic uncertainty and the Federal Reserve's future policies. Investors should closely monitor upcoming US economic data and Federal Reserve statements, as these can Importantly influence the direction of precious metal prices. In times of geopolitical tension and economic instability, gold and silver will likely maintain their appeal as safe-haven investments, suggesting a continued potential for price appreciation.
