Gold Prices Jump as Fed Rate-Cut Expectations Strengthen; Retail Rates Rise Across Cities

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Gold prices in India climbed sharply on Friday, November 28, as expectations of an early US Federal Reserve rate cut boosted global demand for the precious metal. Domestic futures ended the day higher, reflecting growing optimism that lower interest rates could strengthen gold’s appeal as a safe-haven asset in the coming month.

On the MCX, Gold December futures closed 1.13% higher at ₹1,26,920 per 10 grams, while Silver March contracts ended 0.21% higher at ₹1,75,340 per kg. According to India Bullions, 24-carat gold opened Saturday at ₹1,27,580 per 10 grams, whereas 22-carat gold was quoted at ₹1,16,948 per 10 grams. Silver stood at ₹1,72,740 per kg for 999 purity.

Gold’s long-term performance continues to impress investors. Over the last twenty years, the metal has skyrocketed nearly 1,500%, rising from around ₹7,600 in 2005 to well over ₹1,25,000 in 2025. It has delivered positive returns in 16 out of the last 20 years and is currently up 56% year-to-date, reaffirming its status as a reliable store of value during periods of global uncertainty and shifting monetary policies.

Across major Indian cities, retail gold prices remained firm on Saturday morning. In Mumbai, 24-carat gold was priced at ₹1,27,350 per 10 grams, while 22-carat gold stood at ₹1,16,738. Delhi recorded slightly lower rates, with 24-carat gold at ₹1,27,130 and 22-carat gold at ₹1,16,536. Kolkata saw 24-carat gold at ₹1,27,180, and Ahmedabad witnessed one of the higher quotes at ₹1,27,520 for 24-carat purity.

Southern metros also reflected a similar trend. Bengaluru reported ₹1,27,450 for 24-carat gold, while Hyderabad registered ₹1,27,550. Chennai continued to trade at the upper end of the price range with 24-carat gold costing ₹1,27,720 per 10 grams, one of the highest among major cities. These regional variations largely stem from transport costs, local taxes, and individual jeweller premiums.

Silver prices also remained elevated across the country. In Mumbai, silver bullion traded at around ₹1,72,430 per kg, and in Delhi, prices hovered near ₹1,72,130 per kg. Other major cities, including Kolkata, Ahmedabad, Bengaluru, Hyderabad, and Chennai, reported silver prices in the ₹1,72,200 to ₹1,72,930 range.

With growing confidence that the US Federal Reserve could ease rates sooner than expected, analysts believe gold may retain its upward momentum in the near term. Any confirmation from the Fed in its December policy meeting could influence both futures and spot prices, keeping domestic demand high during the ongoing wedding and festive season.