Gold prices near Rs 1.45 lakh/10g, silver jumps Rs 2,900/kg on MCX despite rising Fed rate hike bets. Check rates in your city

Gold and silver prices in the domestic market inched higher after a sharp drop in the previous session. Still, investors remain cautious as stronger-than-expected US inflation data boosted expectations of a rate increase by the Federal Reserve next month, exerting pressure on the precious metals.

In the domestic market, MCX silver futures for December 2026 delivery gained Rs 2,938 to Rs 1,85,514 per kg. Gold futures for December 2026 delivery rose by Rs 846 to Rs 1,44,546 per 10 grams.

Gold prices edged slightly higher in early Asian trade today but remained close to a one-week low following the stronger-than-expected US inflation data.


Also read | Gold holds near one-week low as hot US inflation boosts Fed hike bets

Why are Fed rate hike expectations rising?

Traders are now betting on a half-percentage-point Fed rate hike next month. Odds surged after data showed US inflation sped up more than expected in October and policymakers signalled a willingness to tighten policy more aggressively. Traders now see a 100% chance of a rate increase in December, higher from 84% before the release of the data, according to CME's FedWatch tool, cited by Reuters.

Federal Reserve’s Vice Chair of Supervision, Michelle Bowman, joined a rising number of policymakers in stressing that reducing inflation remains the American central bank's top priority. However, she stopped short of explicitly calling for further rate hikes and said price pressures should ease next year as the effects of recent economic shocks fade.

While gold is seen as an inflation hedge, higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors. Meanwhile, the Monetary Authority of Singapore said it would launch a vaulting service to hold bullion for foreign central banks and lower taxes on some companies in the gold market as it competes for a bigger slice of the precious metals trade.

Also read | Singapore to launch gold vaulting service for foreign central banks

Gold, silver international prices

Spot gold rose 0.2% to $4,039.07 per ounce, after falling nearly 3% in the previous session. US gold futures for December delivery rose 0.4% to $4,046.40.

Silver remained almost unchanged at $51.52 per ounce, while platinum rose 0.4% to $1,546.47 and palladium gained 0.2% to $1,027.19.

What lies ahead for precious metals

If we see positive developments in the Middle East, ⁠that would be supportive for gold from an inflation standpoint, but overall, the near-term macro setup for gold does not seem positive, Reuters quoted Soni Kumari, an analyst at ANZ.

Gold rate in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,30,940/10 grams while pure gold (24 carat) prices stand at Rs 1,42,830/10 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,30,790/10 grams while pure gold (24 carat) prices stand at Rs 1,42,680/10 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,32,110/10 grams while pure gold (24 carat) prices stand at Rs 1,44,120/10 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,30,790/10 grams while pure gold (24 carat) prices stand at Rs 1,42,680/10 grams.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.