Gold Prices Surge Ahead of Fed’s Anticipated Rate Decision

Gold prices in India experienced a notable increase as speculation mounts regarding a potential rate cut by the US Federal Reserve in December. As of November 30, 2023, MCX gold futures for February 2026 climbed by Rs 1,932, or 1.51%, reaching Rs 1,29,599 per 10 grams. Meanwhile, silver futures for February rose slightly by 0.16% to Rs 1,75,650 per kilogram.

Prices for gold in various cities reflect this upward trend. Early trade data released by India Bullions at 6:20 am indicated that 24-carat gold was priced at Rs 1,29,640 per 10 grams, while 22-carat gold was available at Rs 1,18,837. The price of silver (999 fine) was reported at Rs 1,75,000 per kilogram.

Long-Term Growth of Gold Prices

Over the past two decades, gold has proven to be a lucrative investment, appreciating by nearly 1,500%. In 2005, the price of gold was approximately Rs 7,638, and it has steadily risen to over Rs 1,25,000 in September 2025. Remarkably, gold has provided positive returns in 16 out of the last 20 years. Analysts attribute this continuous appreciation to its appeal as a safe haven during periods of inflation, geopolitical tensions, and market volatility. Year-to-date, gold prices have increased by 56%, bolstered by strong central bank purchases and a weaker outlook for the US dollar.

Current Retail Prices Across Major Cities

In major metropolitan areas, gold prices remain robust. In Mumbai, 24-carat gold is priced at Rs 1,29,400 per 10 grams, while 22-carat gold stands at Rs 1,18,617, consistent with MCX rates. In Delhi, the prices are Rs 1,29,180 for 24-carat and Rs 1,18,415 for 22-carat gold. Kolkata mirrors this trend with prices of Rs 1,29,230 for 24-carat and Rs 1,18,461 for 22-carat gold.

In Ahmedabad, the prices are slightly higher, with 24-carat gold at Rs 1,29,570 and 22-carat gold at Rs 1,18,773. Down south, Bengaluru lists 24-carat gold at Rs 1,29,500 and 22-carat at Rs 1,18,708. Hyderabad prices are reported at Rs 1,29,610 for 24-carat and Rs 1,18,809 for 22-carat gold. Notably, Chennai has the highest prices among major markets, with 24-carat gold at Rs 1,29,780 and 22-carat at Rs 1,18,965.

As prices rise, there is a possibility that jewellers may impose additional costs, including GST and making charges, which could further elevate retail prices.

In terms of silver, prices in Mumbai for one kilogram of silver bullion are at Rs 1,74,680, while the MCX price for silver 999 is Rs 1,75,340. Similar pricing trends are observed in Delhi, Kolkata, Ahmedabad, Bengaluru, Hyderabad, and Chennai, with minor variations attributed to local demand and transportation costs.

Analysts are closely watching the market, as gold is now only Rs 2,700 away from its record high. Many believe that a new peak in gold prices could be on the horizon if the Federal Reserve indicates the beginning of an easing cycle. Global macroeconomic trends, inflation data, and currency fluctuations will play critical roles in shaping the future trajectory of gold prices as the market approaches the end of the year.

Investors are advised to consult with certified financial professionals before making any investment decisions, as market conditions can be volatile and unpredictable.