Market Performance: Bullion Extends Its Rally
Gold and silver prices continued their strong upward momentum on Thursday, December 11, following the US Federal Reserve’s latest interest rate cut. With the Fed delivering its third consecutive 25-bps reduction, rate-sensitive precious metals reacted sharply across both global and Indian markets.
In early trade, MCX gold February futures rose 0.60% to ₹1,30,575 per 10 grams, while MCX silver March futures jumped 2.42% to ₹1,93,300 per kg, after briefly touching a record high of ₹1,93,452 per kg.
The surge aligns with broader moves in the international market, where US gold futures for February climbed more than 1% to USD 4,271.30 per ounce, and silver continued to push into new high territory.
Main News: Fed’s Policy Shift Sparks Global Bullion Rally
The latest US Fed rate cut—announced post the December 10 FOMC meeting—brought the federal funds rate down to the 3.50%–3.75% range, its lowest level since 2022. With a total easing of 75 bps this year, the Fed signaled a continued but cautious approach to monetary softening.
Lower interest rates typically support precious metals like gold and silver because the opportunity cost of holding non-yielding assets falls. The result is renewed demand across global markets.
This policy shift immediately influenced bullion prices in India, with traders responding to:
- Softer interest-rate environment
- Increased safe-haven buying
- Strong overseas cues
- Rising volatility in global macroeconomic conditions
As a result, the gold price today and the silver rate today showed sharp intraday gains, strengthening the existing upward trend.
Why Silver Prices Are Rising: Record Highs Fueled by Demand and Global Signals
Silver has been the standout performer, hitting fresh historic highs both globally and domestically. The metal’s rally is being driven by a mix of safe-haven demand and its strong industrial utility.
Several factors contributed:
- Silver’s dual nature as a precious and industrial metal
- Growing demand amid shifting global economic conditions
- A supportive macro backdrop following the US Fed meeting
- Ongoing buying interest across spot and futures markets
With silver prices rising at this pace, it has become one of the fastest-moving commodities in the current cycle.
Gold Price Surge: India Mirrors Global Trends
Gold prices in India stayed firmly in the green, keeping pace with global bullion cues. The metal gained after the Fed reaffirmed its easing cycle.
Key highlights:
- MCX gold futures moved above the ₹1,30,000 mark
- Global gold prices crossed USD 4,270 per ounce
- Domestic demand stayed resilient amid international volatility
The combination of Fed-driven sentiment, geopolitical tension, and a softer dollar supported the gold price in India and fueled renewed buying interest in the yellow metal.
Summary
The Federal Reserve interest rate cuts have once again shifted the momentum in favor of precious metals. Both gold and silver showed sharp gains on December 11, with silver hitting record highs in global and domestic markets.
Key takeaways:
- Fed cut rates by 25 bps, bringing the range to 3.50%–3.75%
- Gold price today jumped to ₹1,30,575 per 10g on MCX
- Silver rate today hit ₹1,93,452 per kg, marking a historic peak
- Global bullion prices mirrored domestic trends
- Lower interest rates continue to support gold and silver demand
The latest US Fed news has added fresh momentum to the rally, keeping precious metals at the center of global market attention.
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