Gold prices advanced on Tuesday, November 25, supported by firm global trends and renewed expectations of a possible interest rate cut by the US Federal Reserve next month. The anticipation of lower interest rates generally strengthens demand for gold, as the opportunity cost of holding non-yielding assets reduces. This shift in sentiment was reflected in the domestic market, where gold prices moved higher across major cities including Delhi, Mumbai, Kolkata, and Chennai.
On the Multi Commodity Exchange, December gold futures began the day on a positive note and were trading 0.85 percent higher at Rs 1,24,907 per 10 grams at 9:08 pm. Silver December futures also recorded gains, rising 1.33 percent to Rs 1,56,543 per kilogram. The movements in futures contracts indicate continued investor interest in precious metals amid changing economic expectations.
In the spot market, prices remained firm. According to India Bullion data, 24-carat gold was quoted at Rs 1,25,480 per 10 grams, while 22-carat gold stood at Rs 1,15,023 per 10 grams. Silver of 999 purity was trading at Rs 1,57,130 per kilogram. These prices showed a visible rise compared to the previous week, adding cost pressure for buyers during the busy marriage season in India.
The latest movement in gold prices reflects a broader long-term trend. Over the past two decades, gold has emerged as a strong performing asset in India. Prices have surged nearly 1,500 percent, rising from Rs 7,638 per 10 grams in 2005 to above Rs 1.25 lakh in 2025. Out of the last 20 years, gold has delivered positive returns in 16 years, making it one of the most consistent assets for Indian households and investors.
Experts note that global economic uncertainties continue to play a major role in influencing gold prices. The possibility of a US Federal Reserve rate cut, weakening global currency trends, and geopolitical tensions have collectively pushed investors toward safe-haven assets. The domestic market, which depends heavily on global cues and currency movements, has mirrored the international trend.
In addition to global factors, local demand has also contributed to the current price rise. With the wedding and festival season underway, demand for jewellery, coins, and bars remains strong. Jewellers across metro cities have reported steady footfall, although higher prices may affect purchasing decisions for some consumers.
On a year-to-date basis, gold prices in India have risen 56 percent, marking one of the strongest yearly gains in recent times. Analysts believe the upward momentum may continue if global monetary policies remain supportive and demand stays firm. However, they also caution that any sharp movement in the dollar index or sudden policy changes could influence the price trajectory.
Overall, the latest rise in gold prices reflects a combination of global and domestic factors, reinforcing gold’s position as a preferred investment and a key commodity in the Indian market.
