Precious metals rally on Fed rate cut hopes

Gold and silver prices rallied in the futures trade tracking firm global trends amid easing concerns over the US government shutdown and growing expectations of a rate cut by the Federal Reserve in its December meeting.

Gold futures for December delivery extended the gains for the fourth consecutive day appreciating Rs 725, or 0.58 per cent to Rs 1,24, 695 per 10 grams.

Similarly, the February 2026 contract for the yellow metal futures surged by Rs 736, or 0.59 per cent to Rs 1,26,101 per 10 grams. Silver futures also saw the uptrend, with the December contract climbing Rs 639, or 0.42 per cent, to Rs 1,54,330 per kilogram.

The March 2026 contract climbed by Rs 632, or 0.4 per cent to Rs 1,56,880 per kg on the commodities bourse.

“Gold and silver opened the week on a strong note amid expectations of a resolution to the US government shutdown, and growing anticipation of rate cuts in the December Fed meeting supported the rally.

“Weakness in the dollar index triggered profit-taking, while safe-haven demand further boosted prices,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities, said.