DBT Bureau
Pune, 10 Dec 2025
Gold extended its upward momentum, settling 0.11% higher at ₹130107 as markets increasingly priced in a potential Federal Reserve rate cut. Investor focus now shifts to the Fed’s updated economic projections and Chair Jerome Powell’s commentary, which are expected to offer clearer insight into the policy path heading into 2026. Ahead of the decision, the JOLTS job openings report remains key for gauging labor market dynamics. Gold has rallied nearly 60% this year, supported by sustained central bank buying, solid ETF inflows, and strong safe-haven interest. China’s central bank raised its gold reserves for the 13th consecutive month to 74.12 million troy ounces, while global central banks added 53 tonnes in October, led by Poland and Brazil. ETF demand also remained firm, with global gold ETFs marking their sixth straight month of inflows, totaling $5.2 billion in November and pushing AUM to $530 billion, the highest on record. In physical markets, Indian gold prices neared record highs, dampening retail demand and widening dealer discounts to $22 per ounce. China saw mixed premiums and discounts amid volatility, while Singapore and Hong Kong traded in tight premium ranges. Fresh buying interest was evident with open interest rising 3.06% to 13,404 as prices gained 145 rupees. Immediate support is placed at ₹129320, below which prices could slide toward ₹128530. Resistance is seen at ₹130680, and a breakout above this zone may open the door for a test of ₹131250.
Market Analysis:
- Gold trading range for the day is ₹128530- ₹131250.
- Gold remained in range as investors priced in a Federal Reserve rate cut.
- Updated economic projections and comments from Chair Powell should provide greater clarity on the policy path into 2026.
- Global physically backed gold ETFs registered their sixth consecutive monthly inflow, adding US$5.2bn in November.
Silver jumped 3.48% to ₹188064 as investors positioned themselves ahead of an expected U.S. Federal Reserve rate cut, although uncertainty persists regarding the 2026 policy outlook, with expectations of a possible “hawkish cut” from Chair Jerome Powell. The metal recently surged to record highs, supported by dwindling visible inventories, renewed ETF inflows, and expectations of another supply deficit this year. Industrial demand—especially from solar and green technologies—continues to strengthen the medium-term bullish outlook. Silver-backed ETFs added nearly 200 tonnes, pushing total holdings to their highest levels since 2022. A significant volume of silver moved into London last month, tightening availability in other markets, while Shanghai Futures Exchange inventories fell to their lowest in a decade. Chinese exports spiked to a record 660 tonnes in October, further reshuffling global supply flows. Meanwhile, U.S. macro data showed steady inflation trends, with the PCE index rising 0.3% and personal spending also up 0.3%. Liquidity concerns persist globally as borrowing costs remain elevated, and traders monitor potential U.S. tariffs after silver’s inclusion in the U.S. critical minerals list. LBMA data showed London vault silver stocks rising 3.5% to 27,187 tonnes in November. The market saw short covering, reflected in a 7.12% drop in open interest to 12,806 as prices rallied 6,322 rupees. Key support lies at ₹182555, and a break below could drag prices toward ₹177045. Resistance is positioned at ₹191120, and a sustained move above this level may trigger a rise toward ₹194175.
Market Analysis:
- Silver trading range for the day is ₹177045- ₹194175.
- Silver makes record high as investors prepared for an expected interest rate cut from the US Federal Reserve.
- Prices gains supported by low visible exchange inventories, renewed ETF accumulation, and expectations of another market deficit this year.
- Strong industrial demand from solar and other green technologies further underpins the medium-term case for higher prices.
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
