Gold prices soar ₹1,32,200 per 10 gm amid firm global trends, rupee depreciation; silver futures hit lifetime high on MCX

Gold prices (24K, 99.9% purity) advanced ₹670 to ₹1,32,200 per 10 gram in Delhi on Wednesday, December 3, as firm global trends and weak rupee boosted safe-haven demand for the yellow metal, according to the All India Sarafa Association. The precious metal closed at ₹1,31,530 per 10 gram on Tuesday.

The rupee fell to an all-time low, crossing the 90-mark against the US dollar on Wednesday for the first time ever, supporting bullion prices further.

Silver rates, however, snapped their six-day rally to fall by ₹460 to ₹1,80,900 per kg.

The rupee settled at a lifetime low of 90.21 (provisional), down 25 paise from its previous close, amid sustained foreign fund outflows and higher crude oil prices.

In the overseas market, spot gold was trading slightly higher at $4,207.67 per ounce, while silver advanced to $58.47 per ounce. During the session, the white metal touched a record high of $58.94 per ounce.

The rising hopes for a 25 basis points (bps) rate cut to be announced at the US Federal Reserve’s FOMC meeting next week are also pushing bullion upwards.

Gold, silver futures

Gold futures for the February expiry soared to an intraday high of ₹1,31,400 per 10 gram on the Multi Commodity Exchange on Wednesday. At around 7:35 pm, the contracts were trading 0.95% higher at ₹1,30,995 per 10 gram.

Notably, silver contracts for the March delivery hit a lifetime high of ₹1,84,743 per kg on the MCX on Wednesday. At around 7:40 pm, the futures contracts were trading 0.4% up at ₹1,82,406 per kg.

The ongoing Reserve Bank of India Monetary Policy meeting will conclude on December 5, providing an outlook on the economy and inflation, helping traders understand how gold may perform in the near term.