Gold prices rise by over Rs 1,000 on rate-cut hopes, silver up by Rs 1,900. What comes next?

Gold and silver prices opened in the green on Tuesday, extending gains up to 1.2% on hopes of a Fed rate cut in December. Gold December futures prices at MCX were trading higher by Rs 1,070 or 0.86% at Rs 1,24,924/10 grams.

Meanwhile, silver prices for December futures contracts opened at Rs 1,56,380/kg, higher by Rs 1,898 or 1.23%.

In the international markets, gold prices remained steady on Tuesday after gaining nearly 2% in the previous session, as growing expectations of a U.S. rate cut in December offset the impact of a firm dollar.

Spot gold eased 0.2% to $4,132.20 per ounce as of 0107 GMT. On Monday, bullion had climbed 1.8% to $4,139.80 — its highest level since November 14. Meanwhile, U.S. gold futures for December delivery were up 0.7% at $4,049.50 per ounce.

The U.S. dollar stayed close to the six-month highs touched last week, making the metal more expensive for buyers holding other currencies. The U.S. Dollar Index (DXY) hovered near 100.15, down 0.05 points or 0.05%.

New York Federal Reserve President John Williams said on Friday that U.S. interest rates could be lowered “in the near term” without jeopardizing the Fed’s inflation target, adding that doing so could help prevent a deterioration in labor market conditions.Investor expectations for a December rate cut continued to firm, with the CME FedWatch Tool showing an 81% probability — up from 79% a day earlier and 40% last week. Gold, which does not offer interest, typically performs better in environments with lower interest rates.However, several Fed officials have maintained a cautious tone. Dallas Fed President Lorie Logan said rates should remain unchanged for now, while the Chicago and Cleveland Fed chiefs cautioned that reducing borrowing costs further at this stage could pose risks to the economy.

On the geopolitical front, U.S. and Ukrainian officials worked on narrowing remaining differences on Monday regarding a roadmap to end the Ukraine war, following adjustments to a U.S. proposal that Kyiv and European allies initially viewed as too aligned with Moscow’s demands.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 93,176/8 grams while pure gold (24 carat) prices stand at Rs 1,00,224/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 92,512/8 grams while pure gold (24 carat) prices stand at Rs 99,464/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai are Rs 92,472 per 8 grams, while pure gold (24 carat) prices are Rs 99,504 per 8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 92,640/8 grams, while pure gold (24 carat) prices stand at Rs 99,608/8 grams.

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