Gold Prices Surge Past ₹1.33 Lakh: What Drove the Rally on 1 December 2025

The Indian gold market witnessed a spectacular rally on Monday, 1 December 2025, bringing cheer to investors but caution for potential jewelry buyers. Prices for the yellow metal surged significantly across the country, with 24-carat gold in Delhi climbing by a massive ₹3,040 to reach ₹1.33 lakh per 10 grams. Similar trends were observed in other major cities like Mumbai, Chennai, and Kolkata, with MCX futures also hovering around the ₹1.3 lakh mark. This sharp domestic increase was a direct reflection of powerful trends in the international market, where gold on the Comex exchange hit a six-week high of $4,299 per ounce.

The primary driver behind this global and domestic price surge was the growing expectation that the US Federal Reserve is preparing to cut interest rates. When interest rates are expected to fall, it typically weakens the US dollar and reduces the opportunity cost of holding non-yielding assets like gold, making the precious metal more attractive to international investors. This sentiment has provided strong tailwinds for bullion, pushing prices higher. While gold enjoyed the spotlight, it was silver that truly stole the show. Silver prices zoomed to a new record high, crossing the ₹1.78 lakh per kilogram mark, capping an incredible year-to-date gain of over 85%.

For Indian investors and those planning to buy gold for weddings or other occasions, the current market dynamics suggest a period of high volatility. The significant single-day jump underscores how sensitive local prices are to international economic news. With the year drawing to a close, market experts have begun to release their price predictions for 2026, debating whether this bullish momentum for both gold and silver can be sustained. The coming days will be crucial, and market watchers are advised to keep a close eye on global cues, particularly any further announcements from the US central bank, to make informed decisions.