“Gold and silver prices jumped as delayed US economic data bolstered expectations of a December Fed rate cut,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.
Globally, Comex gold for December delivery rose $28.20, or 0.68%, to $4,193.40 per ounce, while silver advanced 1.03% to $51.61 per ounce.Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that US retail sales in September grew just 0.2% after a stronger gain in August, indicating slower consumer demand.
Producer price index data also aligned with expectations, suggesting the Fed may have room to ease policy.Markets now see over an 80% probability of a 25 basis points rate cut in December, up from around 50% last week.
However, Trivedi added that gold’s upside could remain limited amid easing geopolitical tensions, as Ukrainian authorities reportedly agreed to a roadmap to end the conflict with Russia, reducing safe-haven demand.
Ross Maxwell, Global Strategy Lead at VT Markets, noted that while bullish drivers—including rate cut expectations, a softer dollar, rising ETF allocations, and central bank buying—are largely priced in, fresh catalysts will be needed for the next leg higher.
Spot gold recently touched $4,141 per ounce, its strongest level since mid-November. Maxwell added that gold remains best suited for measured allocation within a diversified portfolio rather than short-term trading.
–With PTI inputs
