Gold price today: Gold rates rose in the domestic futures market on Tuesday morning, supported by positive global trends and strong demand in the local spot market. A weaker dollar, driven by profit-booking against major currencies, further bolstered sentiment. MCX Gold for December 5 expiry traded 0.43 per cent higher at ₹75,369 per 10 grams around 9:10 am.
In international markets, gold prices climbed as the US dollar eased on profit booking after last week’s solid gains. Gold is priced in dollars globally, so bullion becomes more affordable for buyers using other currencies when the US currency weakens.
Meanwhile, investors awaited further cues on the US interest rate trajectory as several Federal Reserve officials are due to speak this week.
Fed rate cuts play a crucial role in supporting gold prices. After a cumulative 75-basis-point reduction since September, market participants eagerly await more clarity on the future trajectory of rate adjustments.
According to Reuters, traders currently see a 58.8 per cent chance of a 25-basis-point cut in December versus 41.2 per cent odds of holding the rates steady. Recent strong economic data in the US has dented expectations of a deep Fed rate cut.
Persisting geopolitical tensions are supporting gold prices. According to a Reuters report, “Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, severely damaging the country’s power system.”
Experts believe geopolitical uncertainty, rate cuts and central bank-buying augur well for the yellow metal.
According to global financial firm Goldman Sachs, gold prices may hit the $3,000 an ounce mark by December 2025.
(More to come)
