Gold prices have climbed to their highest level in over a month, fueled by growing market anticipation that the US Federal Reserve will lower interest rates at its upcoming policy meeting. The precious metal's rally was observed in both international and domestic Indian markets on Monday, 1 December 2025.
International and Domestic Markets Rally
On the global stage, gold futures at the New York Commodity Exchange (Comex) touched a significant high. During the trading session, prices reached $4,299 per ounce, marking the strongest level seen since 21 October 2025. By late Monday, the most active gold futures contract was trading at $4,259.10 per ounce, a gain of 0.10% from the previous close of $4,254.90.
Similarly, spot gold prices, as reported by Reuters, increased by 0.1% to $4,233.83 per ounce by 11:15 a.m. EDT, also hitting a peak not seen since late October.
The bullish trend resonated strongly in India. On the Multi-Commodity Exchange (MCX), gold futures for December delivery closed notably higher. The official data showed prices settling at ₹130,596 per 10 grams, a jump of 0.85% from the previous session's close of ₹129,504.
What is Driving the Gold Surge?
Market experts point to a confluence of factors supporting the upward trajectory of gold and silver. The primary driver is the heightened expectation of monetary policy easing by the US central bank. Following softer economic indicators and dovish comments from Fed Chair Jerome Powell, traders are now pricing in an 87% chance of a rate cut in December.
"The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target... is still the underlying support in gold and silver," explained David Meger, director of metals trading at High Ridge Futures, in a statement to Reuters. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.
Key Data and Events Ahead
Investors and traders are now keenly awaiting several key economic releases that could influence the Fed's decision and, consequently, gold prices. The focus is on the November ADP employment report scheduled for Wednesday, 3 December 2025, and the delayed Personal Consumption Expenditures (PCE) Index data for September 2025, due on Friday, 4 November.
The price movement also occurred ahead of a scheduled speech by Fed Chair Jerome Powell on Monday, which serves as a precursor to the crucial Federal Open Market Committee (FOMC) policy meeting on 10 December 2025.
David Meger summarized the current outlook, stating, "We still view gold and silver in a strong sideways to higher uptrend." This sentiment underscores the continued positive bias in the market, supported by persistent US inflationary pressures and the overarching uncertainty regarding the timing and extent of Fed rate cuts.
