Gold And Silver Futures Rise On Fed Rate Cut Expectations

Gold and silver prices gained momentum in futures trade on Friday, supported by global trends and growing expectations of a US Federal Reserve rate cut. Investors are increasingly betting on monetary easing, which typically boosts demand for non-yielding assets like precious metals. Domestic markets also saw strong spot demand amid the wedding season, adding to the upward push.  

Key highlights from the announcement include  

• On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 596, or 0.47 percent, to Rs 1,26,100 per 10 grams.  
• The February 2026 gold contract gained Rs 669, or 0.52 percent, to Rs 1,28,336 per 10 grams.  
• Silver December futures surged Rs 1,183, or 0.73 percent, to Rs 1,63,650 per kilogram.  
• The March 2026 silver contract advanced Rs 1,373, or 0.83 percent, to Rs 1,67,360 per kilogram.  
• Market analysts noted that gold futures are approaching a critical resistance zone between Rs 1,26,800 and Rs 1,27,500.  
• A decisive close above this band could trigger a fresh rally toward Rs 1,29,000–1,30,500 levels.  
• Strong physical demand in India, particularly during the wedding season, is supporting prices.  
• Global cues, including a weaker US dollar and expectations of Fed easing, remain favorable for precious metals.  
• Silver’s industrial demand outlook also adds strength to its price trajectory.  

The rally in gold and silver futures reflects a mix of global monetary expectations and domestic seasonal demand. With investors closely watching the Fed’s next policy move, precious metals are likely to remain in focus as safe-haven assets and inflation hedges.  

Sources: Deccan Herald, Rediff Money, Free Press Journal, Daily Excelsior