Gold Prices Surge: Fed Rate Cut Ignites Major Rally on 11 December 2025
Gold and silver prices soared today following the US Fed's rate cut, with MCX gold jumping significantly and silver hitting a new record high. Investors ponder strategies in this new low-rate regime.
⚡ Key Highlights
- 1MCX gold witnessed a substantial jump, boosting safe-haven appeal.
- 2US Federal Reserve cut key interest rates, impacting global markets.
- 3MCX Silver futures hit a fresh all-time record high above ₹1.93 lakh.
- 4Low-rate regime prompts re-evaluation of gold investment strategies.
- 5Gold-silver ratio at 68, signaling potential market dynamics ahead.
The Indian gold and silver markets witnessed a significant surge today, 11 December 2025, largely driven by the US Federal Reserve's decision to cut key interest rates. This pivotal move by the Jerome Powell-led FOMC, lowering rates to 3.50%-3.75% amid elevated US inflation, immediately bolstered the appeal of precious metals as safe-haven assets, sending prices soaring for investors and jewelry shoppers alike.
On the Multi Commodity Exchange (MCX), gold futures saw a substantial jump, with some reports indicating a rise of ₹1,500 per 10 grams, while others noted an increase of ₹800. This upward momentum was mirrored in silver, which hit an astounding all-time high on the MCX, with futures trading above ₹1.93 lakh and even touching ₹1,93,452. While the broader market experienced this sharp rally, some specific retail rates, such as 24-carat gold in India, saw a minor decrease of ₹110, and prices in Hyderabad reportedly "slashed," indicating localized fluctuations that contrast with the dominant upward trend in futures. The gold-silver ratio in India stood at 68, a metric investors will be closely watching for signals on future price movements.
The primary catalyst for today's market excitement was undoubtedly the US Fed's rate cut. Such a move typically devalues the US dollar, making dollar-denominated commodities like gold more attractive to international buyers. Furthermore, a low-interest-rate environment reduces the opportunity cost of holding non-yielding assets like gold, thereby increasing its demand. With discussions around potential RBI rate cuts also in the air, the combined effect points towards a prolonged low-rate regime that could have significant implications for gold and silver prices in India. Despite the global drivers, demand in India remained steady, even as rates in countries like Thailand hit a 6-month high.
Looking ahead, the outlook for both gold and silver appears strong, with market experts predicting that the rally is likely to continue. For investors, a low-interest-rate environment signals a shift in strategy, potentially favoring precious metals for portfolio diversification and as a hedge against economic uncertainties. The question of whether silver will breach the ₹2 lakh mark in December is now a hot topic. For jewelry shoppers, while current prices are elevated, the prevailing market sentiment suggests continued strength, making it crucial to stay informed about daily rate changes in cities like Rajkot and other major centers before making purchases.