Gold prices in India are just 2700 rupees away from hitting a new all-time high as of November 29, 2025, driven by strong expectations of a US Federal Reserve interest rate cut and a weakening US dollar. Experts say this surge marks the fourth straight month of gains, with potential for more upside amid global uncertainties and local demand.
Current Gold Price Trends
Gold futures on the Multi Commodity Exchange for February 2026 closed at 129599 rupees per 10 grams on Friday, up 1932 rupees or 1.51 percent from the previous week. This puts it close to the record peak of 132294 rupees seen on October 17, 2025.
Spot gold prices globally hovered near 4157 dollars per ounce, supported by recent US economic data showing softer retail sales and stable inflation. In India, the rally reflects both international factors and strong domestic buying.
Market watchers note that gold has gained for four months in a row, fueled by bets on a 25 basis point Fed cut in December, with odds now at 87 percent.
How US Fed Rate Cut Buzz Fuels the Rise
The US Federal Reserve’s potential rate cut has become a major driver for gold’s upward move. Recent comments from Fed officials suggest a dovish stance, especially after data revealed weaker consumer confidence and retail sales.
This environment makes gold more attractive as a non yielding asset when interest rates fall. Lower rates reduce the opportunity cost of holding gold, drawing more investors.
Experts point out that if the Fed cuts rates as expected, it could push gold toward 4400 dollars per ounce globally, translating to higher prices in India.
A mixed US jobs report, with declining jobless claims but softening other indicators, keeps the door open for this policy shift.
Weak US Dollar Adds Momentum
A struggling US dollar index, failing to hold above 100, has bolstered gold’s appeal as a safe haven. Political moves by the incoming Trump administration, like plans to pause immigration and cut benefits, have added uncertainty, pressuring the dollar further.
This weakness makes gold cheaper for buyers using other currencies, boosting global demand. In India, gold imports surged nearly 200 percent to 14.72 billion dollars in October 2025, up from 4.92 billion a year earlier.
Silver imports also jumped 528 percent to 2.72 billion dollars, showing broad strength in precious metals.
Domestic Demand During Wedding Season
India’s wedding season, with about 45 to 50 lakh ceremonies from early November to mid December 2025, is driving physical gold purchases. This traditional demand peaks during festivals and weddings, pushing up local prices.
Ongoing talks under the India UAE Comprehensive Economic Partnership Agreement aim to streamline gold imports via an auction based quota, which could stabilize supply and keep premiums in check.
- Strong wedding related buying supports retail demand.
- Increased imports help balance supply amid high interest.
- Jewellers report steady footfall in major cities.
Geopolitical Risks and Global Outlook
The ongoing Russia Ukraine conflict keeps geopolitical tensions high, favoring gold as a hedge against instability. While peace talks show some progress, complexities mean risks persist, supporting safe haven flows.
Recent events, like Bitcoin’s volatility and stock market fluctuations, have also shifted investor focus toward gold. Analysts warn that any escalation could accelerate the rally.
In the broader context, gold’s role in portfolios grows amid inflation worries and economic slowdown fears.
Expert Predictions for Gold’s Future
Commodity experts forecast gold could break above 130000 rupees per 10 grams soon, targeting 134000 rupees or more if momentum holds. Key support sits at 125700 rupees.
For silver, potential outperformance is expected if industrial demand rises. Investors are advised to buy on dips for better value, given recent volatility.
| City | Gold Price (per 10 gm) | Silver Price (per kg) |
|---|---|---|
| New Delhi | 127130 | 172130 |
| Mumbai | 127350 | 172430 |
| Kolkata | 127180 | 172200 |
| Chennai | 127720 | 172930 |
| Bengaluru | 127450 | 172570 |
| Hyderabad | 127550 | 172700 |
This table shows latest prices across major Indian cities, highlighting slight variations due to local taxes and demand.
Overall, the outlook remains positive, but investors should watch US data and global events closely.
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