New Delhi: Global gold markets continued their upward trajectory on Friday, positioning the precious metal for a fourth straight monthly gain. Investors across the world are increasingly betting on a U.S. Federal Reserve interest rate cut in December, fueling renewed appetite for bullion as a safe-haven investment. Spot gold climbed to approximately $4,174 per ounce, while December gold futures surged to nearly $4,221 per ounce before temporary trading disruptions on the CME exchange. Analysts note that these gains underscore gold’s enduring appeal amid persistent economic uncertainties and shifting monetary policies.
Market sentiment is being strongly influenced by recent dovish signals from the Federal Reserve. Senior Fed officials, including Christopher Waller and John Williams, have hinted at the possibility of reducing interest rates in the near term. Such expectations have historically bolstered gold prices, as lower interest rates reduce the opportunity cost of holding non-yielding assets like bullion. Alongside rate-cut optimism, the weakening of the U.S. dollar has enhanced the attractiveness of gold for holders of other currencies, creating additional upward pressure on prices.
The rally has also been supported by technical factors and temporary liquidity constraints in over-the-counter markets. Trading in gold futures experienced interruptions due to a brief outage at the CME Group, amplifying short-term price movements. Over the past month, gold has gained roughly 3.9 percent, reflecting sustained investor interest, while silver and platinum have also registered moderate gains, benefiting from the broader bullish sentiment in precious metals markets.
For India, where gold plays a critical role both culturally and economically, these international trends have direct implications. Rising global prices could impact local jewellery demand and investment patterns, particularly as the rupee-dollar exchange rate fluctuates. Investors and consumers alike are watching developments closely, anticipating how central bank actions in the United States might ripple through domestic markets.
Looking ahead, market watchers emphasize that the Fed’s upcoming policy decisions will be decisive for gold’s trajectory. Concrete indications of a rate cut could further strengthen bullion prices, while renewed dollar strength or robust U.S. economic data might temper the rally. For now, gold remains a preferred hedge against global uncertainties, reaffirming its long-standing role as a safe-haven asset in times of economic flux.