Gold Prices Jump 1%, Silver Surges 2% on MCX: What’s Fueling the Rally, and Is It the Right Time to Buy?

Gold and silver prices opened the week on a strong note on Monday, rallying sharply on the Multi Commodity Exchange (MCX). Gold December futures were up 1.04% at ₹1,22,330 per 10 grams, while silver December contracts surged 1.76% to ₹1,50,325 per kg around 9:05 am.

🔹 What’s Driving the Rally?

The renewed momentum in precious metals comes after weeks of correction following record highs in October. Analysts attribute Monday’s spike to positive global cues, a weaker US dollar, and growing expectations of another US Federal Reserve rate cut in December.

Weakness in the US economy has also boosted safe-haven demand. Recent data revealed a softening jobs market and declining consumer sentiment amid the prolonged US government shutdown, now in its 40th day — the longest in US history.

As per Reuters, layoffs surged in October due to cost-cutting measures and increased adoption of artificial intelligence (AI) across businesses. Additionally, the University of Michigan’s consumer sentiment index dropped to its lowest level in over three years in early November.

🔹 Rate Cut Expectations Fuel Gold Gains

Traders now see a 67% probability of a rate cut at the US Fed’s December policy meeting, according to the CME FedWatch Tool. Lower interest rates typically weaken the dollar and make gold more attractive as an investment.

“Gold rose more than 1% amid mounting concerns over the US economy. The prolonged government shutdown and falling consumer sentiment have boosted safe-haven demand, while a weaker dollar has further supported prices,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

🔹 Should You Buy Gold Now?

With expectations of monetary easing and uncertainty in global markets, experts suggest that gold could continue to perform well in the near term. However, investors are advised to monitor the Fed’s December decision and volatility in the dollar index before making fresh purchases.