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Gold nears a seven-week high as US Federal Reserve signals rate cuts, with 24 karat gold at ₹13,266 per gram in India. Silver hits $64.31 per ounce, driven by strong demand and a weaker dollar.
By Anshul December 12, 2025, 11:50:06 AM IST (Published)
Gold prices remained near a seven-week high on Friday (December 12), buoyed by expectations of further interest rate cuts next year after the US Federal Reserve signaled a less hawkish stance. Silver hovered just below Thursday’s (December 11's) record peak, supported by strong industrial demand and a weakening dollar.
Spot gold slipped 0.3% to $4,270.89 per ounce by 0524 GMT but was on track for a 1.8% an ounce weekly gain after reaching its highest level since October 21 on Thursday (December 11).
US gold futures fell 0.3% to $4,302 an ounce. In India, 24 karat gold is priced at ₹13,266 per gram, 22 karat at ₹12,160 per gram, and 18 karat at ₹9,949 per gram.
Silver remained steady at $63.57 per ounce after hitting a record $64.31 on ounce Thursday (December 11), marking a 9.2% an ounce weekly gain. The white metal’s prices have more than doubled this year, supported by firm industrial demand, shrinking inventories, and its inclusion on the US critical minerals list. In India, silver trades at ₹201 per gram and ₹2.01 lakh per kilogram.
The dollar index is on track for a third consecutive weekly decline, making bullion cheaper for overseas buyers. ANZ analyst Soni Kumari noted, “Gold is looking quite positive as the market is still pricing in two rate cuts next year, even though the dot plot suggested just one.”
The Fed delivered its third 25-basis-point rate cut this year in a split decision. Chair Jerome Powell indicated that any further easing would depend on clearer signs of cooling inflation and a softer labour market. Last week, US jobless claims rose by the most in nearly four and a half years, though analysts said the jump does not signal a significant softening in labour conditions.
Non-yielding assets such as gold typically benefit in low-interest-rate environments. Investors now await next week’s U.S. non-farm payrolls report for additional cues on the Fed’s policy path.
Analysts and industry experts remain positive on bullion. Rahul Kalantri, VP of Commodities at Mehta Equities, said, “Gold and silver remain unstoppable in 2025. Strong global fundamentals and a weaker rupee will keep domestic bullion prices elevated."
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, said, “Gold continues to attract interest as investors seek safe havens amid uncertain markets. A positive bias is expected in 2026 with slow global growth and central bank purchases.”
Silver’s momentum also remains strong. Kamboj added, “Encouraging industrial production trends and a weakening dollar are supporting silver. With industrial and clean energy demand rising, silver is expected to outperform in 2026. Small investors can consider tactical investments, keeping in mind price volatility.”
