Precious metals witnessed significant upward movement in Indian markets on Friday, with both gold and silver posting notable gains in futures trading. The rally was primarily fueled by optimistic global trends and growing investor anticipation that the US Federal Reserve might implement interest rate reductions in the coming month.
MCX Futures Show Strong Momentum
On the Multi Commodity Exchange (MCX), gold contracts demonstrated robust performance across different expiry periods. The December delivery gold futures climbed by Rs 596, representing a 0.47% increase, to settle at Rs 1,26,100 per 10 grams. This movement occurred with substantial trading activity involving 4,496 lots.
The February contract displayed even stronger momentum, advancing by Rs 669 or 0.52% to reach Rs 1,28,336 per 10 grams. The trading volume for this contract was notably higher, with 10,370 lots changing hands during the session.
Silver Outshines With Impressive Gains
Silver futures outperformed gold, registering more substantial percentage increases. The December silver contract surged by Rs 1,183, equivalent to 0.73%, to close at Rs 1,63,650 per kg. This transaction involved 5,799 lots, indicating healthy market participation.
The longer-dated March 2026 silver contract demonstrated even stronger performance, jumping Rs 1,373 or 0.83% to settle at Rs 1,67,360 per kg. This contract witnessed the highest trading volume among precious metals, with total trades reaching 15,578 lots.
Global Markets Set the Pace
International markets provided strong directional cues for domestic prices. On the Comex exchange, December gold futures climbed $22.2, marking a 0.53% increase, to reach $4,187.4 per ounce. Silver displayed even more impressive strength in global markets, rising by 1.71% to trade at $53.82 per ounce.
City-Wise Gold Rates Show Mixed Pattern
Physical gold markets across major Indian cities presented a varied picture on Friday. Delhi and Chennai emerged as the top performers with significant price appreciation, while other metropolitan centers experienced marginal declines.
Delhi maintained its upward trajectory with 24K gold reaching Rs 12,861 per gram, representing an increase of Rs 71 from previous levels. The 22K variant rose by Rs 65 to Rs 11,790, while 18K gold gained Rs 53 to trade at Rs 9,649 per gram.
Chennai witnessed the most substantial daily increase among all major cities. The city's 24K gold price jumped Rs 76 to Rs 12,916 per gram, while 22K gold appreciated by Rs 70 to Rs 11,840. The 18K category saw a Rs 60 increase, reaching Rs 9,875 per gram.
In contrast, Noida, Mumbai, and Kolkata experienced minor corrections. All three cities saw identical declines across different purity categories, with 24K gold falling by Rs 16, 22K decreasing by Rs 15, and 18K dropping by Rs 12 from previous day's levels.
The November trading pattern in Kolkata's gold market reflected the influence of global cues, with daily movements largely dictated by international demand patterns and currency fluctuations. Market analysts suggest that the current bullish trend in precious metals is likely to continue as investors increasingly hedge against potential economic uncertainties and await clearer signals from central banks regarding monetary policy direction.
