Gold at 5-Week Peak, Silver at All-Time High as Markets Track Fed Signals

Monday, December 1, 2025: The prices of the two precious metals, silver and gold, regained momentum as the domestic futures markets opened strongly on Monday morning. Gold February Futures traded at 130383 (per ten grams), whereas silver reached the all-time high of 178620 (per kilogram). From an international perspective, gold prices dipped slightly as investors booked profits, anticipating a US rate cut later in the month.

Triggers of the Gold and Silver Rally

There were different reasons for the surge in the prices of gold and silver on Monday, starting with a softening dollar, the expectations of a rate cut by the Federal Reserve, and a weaker INR, which reached an unprecedented low against the US Dollar. The trend was quite similar on Friday when both gold and silver closed a bit higher in both Indian and overseas exchanges. 

On Friday, February Futures (Gold) settled at ₹129504 per ten grams (+1.44% from Thursday), whereas Silver March Futures settled at 174981 (gaining 5.42%). 

Further Market Volatility Expected

Even though the two precious metals have reached formidable heights, the market volatility persists and will impact on the price of futures contracts. However, despite the uncertain conditions and volatility, both gold and silver have strong support levels of $4000 (per troy) and $52.40 (per troy*) in the international markets. 

Immediate Trends and Outlook

The prices of gold and silver will be impacted by the monetary policy announcements by the Federal Reserve. In addition, the expectation of a Russia-Ukraine peace deal will also have a positive impact on the prices of bullion, including gold and silver. Gold prices have already reached a 5-week high, and silver is at an all-time high.

*1 Troy equals 31.1035 grams

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