Gold prices scaled a two-week high on Friday, buoyed by growing expectations that the US Federal Reserve will lower interest rates next month, reigniting demand for precious metals. Silver, meanwhile, surged to a fresh all-time high, extending its rally this month.
In global markets, spot gold rose 1.3 per cent to $4,256.40 per ounce, breaching its earlier peak of $4,195.5 recorded on November 13. The metal logged a weekly gain of 4.5 per cent and advanced 6.05 per cent in November, marking its fourth straight month of appreciation—an uptrend supported by macroeconomic uncertainty and renewed investor appetite for safe-haven assets.
In the Calcutta market, pure gold was priced at ₹1,28,350 per 10 gram on Saturday, reflecting a 3.34 per cent rise on a weekly basis and 5.89 per cent for the month, in tandem with international cues and heightened retail demand.
Silver’s rally was even more pronounced. On the Comex, the metal jumped to a record $57.08 per ounce, up 6.5 per cent and 18.3 per cent over the month, underscoring robust industrial demand and speculative interest. In Calcutta, silver traded at ₹1,73,100 per kg on Friday, gaining 11.71 per cent week-on-week and 15.43 per cent for the month.
“The expectation is that we’re going to continue to have a slower economy going into 2026, and the Federal Reserve is very likely to cut rates, which is getting some investors back into gold,” said Bart Melek, global head of commodity strategy at TD Securities.
Lower borrowing costs tend to weaken the dollar, making non-yielding assets such as gold more attractive.
Echoing similar sentiments, Sandip Raichura, CEO — retail broking and distribution, PL Capital, said gold is poised to test the $4,400 mark, supported by sustained central bank buying and persistent dollar softness.
Expectations of a Fed pivot have hardened in recent days following dovish comments from Fed governor Christopher Waller and New York Fed president John Williams. Softer economic indicators in the aftermath of the US government shutdown have further fuelled the view that rate cuts are imminent. Traders now assign an 87 per cent probability to a December rate cut, sharply higher from 50 per cent a week ago.
Back home, the RBI faces a delicate balancing act — evaluating whether easing inflation and resilient growth justify its own shift towards lower policy rates.