Gold and silver prices advanced in Friday’s futures trade, supported by firm global cues and renewed optimism surrounding a potential US Federal Reserve rate cut next month. The positive sentiment helped bullion extend gains across domestic and international markets, with investors positioning themselves ahead of key macroeconomic triggers.
In Chennai, the gold rate reflected the broader trend seen across gold prices in India. The price of 22k gold stood at Rs 11,840 per gram, while 24k gold was priced at Rs 12,916 per gram on Friday. The uptick mirrored nationwide momentum driven by international developments and shifting expectations around monetary policy.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed Rs 596, or 0.47 per cent, to trade at Rs 1,26,100 per 10 grams in a turnover of 4,496 lots. The February contract also extended its rise, gaining Rs 669 (0.52 per cent) to reach Rs 1,28,336 per 10 grams across 10,370 lots.
Silver moved in tandem with gold. The December silver contract surged Rs 1,183 (0.73 per cent) to Rs 1,63,650 per kg, while the March 2026 contract advanced Rs 1,373 (0.83 per cent) to Rs 1,67,360 per kg in a substantial turnover of 15,578 lots.
Rahul Kalantri, Vice-President (Commodities), Mehta Equities Ltd, said domestic trading was mixed on Thursday due to muted global cues arising from the US Thanksgiving holiday. However, Friday’s session captured renewed strength as global demand picked up.
Chennai Joins Pan-India Price Momentum
Across India, gold prices saw similar movement. Rates for 22k gold in major cities ranged from Rs 11,775 to Rs 11,840 per gram, while 24k gold ranged between Rs 12,846 and Rs 12,916 per gram. The Chennai market’s pricing aligned closely with Coimbatore and Salem, both of which also quoted Rs 11,840 for 22k and Rs 12,916 for 24k gold.
International markets continued to lend strong support. On Comex, gold futures for December delivery rose $22.2 (0.53 per cent) to $4,187.4 per ounce. Silver outperformed gold, climbing 1.71 per cent to $53.82 an ounce after touching an intraday high of $54.23.
Kalantri noted that gold in the Asian session edged close to $4,190, while silver gained further ground above $54, inching towards fresh lifetime highs.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted that gold is now trading near a five-week high, with expectations of a December Fed rate cut growing stronger. He said a series of dovish comments from Fed officials and softer economic indicators have boosted rate-cut hopes.
Gold Heads Toward Best Annual Run Since 1979
Market participants now estimate more than an 80 per cent probability of a 25-basis-point rate cut next month, up from 30 per cent just a week earlier. Investors also expect three additional cuts by the end of 2026. Kevin Hassett, widely regarded as a leading contender to succeed Fed Chair Jerome Powell, echoed President Donald Trump’s call for a rate reduction, reinforcing the trajectory of expectations.
Trivedi added that gold is on track for its strongest annual performance since 1979, supported by aggressive central-bank accumulation and sustained inflows into gold ETFs from non-sovereign investors.
Domestic gold prices continue to be influenced by global bullion rates, the rupee-dollar equation, import duties, and local taxes. With India heavily reliant on gold imports, even slight currency movements can impact pricing sharply. Cultural demand during weddings and festivals further shapes price trends.
As global markets react to shifting monetary expectations, Chennai’s gold buyers and investors remain vigilant, tracking movements closely amid heightened volatility.
