Gold Market Recap: Prices Surge to ₹1,26,666 on Fed Rate Cut Hopes on 29 November 2025
Gold prices in India soared to ₹1,26,666, nearing an all-time high. The rally was driven by strong domestic demand and growing expectations of a US Fed rate cut.
⚡ Key Highlights
- 1Indian gold prices hit ₹1,26,666, now just ₹2,700 away from a record high.
- 2Expectations of a US Fed rate cut and a weaker US dollar fueled the rally.
- 3Strong domestic buying and firm demand also contributed to the sharp price increase.
- 4Gold has now recorded its fourth consecutive monthly gain, set for a historic year.
- 5Silver prices also rose sharply, with some reports noting its exceptional yearly performance.
Gold prices surged across India on Friday, 29 November 2025, continuing a powerful rally that has brought the precious metal within striking distance of its all-time high. The price for 24-karat gold hit a significant ₹1,26,666, marking the fourth consecutive monthly gain and putting it on track for its best yearly return in 46 years. The positive momentum was seen across the board, with prices for 22K and 18K gold also rising in major cities like Mumbai, Delhi, and Bengaluru, reflecting strong investor and consumer sentiment.
The primary driver behind this sharp advance was the growing international buzz around a potential interest rate cut by the US Federal Reserve. Expectations of such a move have weakened the US dollar, making gold more affordable for Indian buyers. This global cue, combined with firm domestic demand, created a perfect storm for the price surge. Local jewelers reported strong buying interest, which supported the rally in both the spot and futures markets, where bullion contracts also saw a significant advance. The market is now just ₹2,700 away from its record peak, with analysts speculating that the momentum could propel it towards the ₹1,34,000 mark.
While gold captured the headlines, silver also experienced a sharp price increase, with some analysts highlighting its staggering performance throughout the year. For investors and jewelry shoppers, the current trend presents both opportunities and challenges. The consistent monthly gains suggest strong underlying support for gold prices. However, with prices so close to a record high, the market is watching for any new signals from the US Fed. The outlook for December will largely depend on whether the rate cut expectations solidify into policy, which could determine if gold will set a new record high before the year ends.