Gold and silver markets were relatively stable, with gold supported by signals from the Federal Reserve suggesting a cautious approach to interest rates, while a strong U.S. dollar limited further gains. Silver remained close to its record highs, reflecting ongoing investor interest. The markets were also eyeing upcoming U.S. inflation data, which could influence prices in the near term.
Commenting on the yellow metal prices Kedia Advisory report states Gold prices edged higher by 0.36 percent to settle at INR 134,894, as investors continued to factor in the possibility of additional monetary easing by the US Federal Reserve next year. Recent US labour market data showed further cooling, with the unemployment rate unexpectedly rising to 4.6 percent in November and wage growth slowing to its weakest pace in over two years. This has reinforced expectations of up to two rate cuts in 2026, with nearly 59 basis points of easing already priced in. Markets are now focused on upcoming US CPI and PCE inflation data for further policy cues.
While on the silver metal front, Silver prices surged sharply, settling higher by 4.89 percent at 2,07,435, driven by tightening global inventories, strong industrial demand and its inclusion on the US critical minerals list. Robust ETF inflows and sustained retail buying further reinforced bullish sentiment, strengthening expectations of a structural market deficit in the coming year. Industrial consumption from solar energy, electric vehicles and data-centre infrastructure continues to expand rapidly, while global mine production and recycling have remained broadly flat for over a decade. Supply-side concerns intensified after China announced strict export controls on silver effective 2026, triggering aggressive pre-emptive buying
Trading ideas for the day
Gold trading range for the day is 132630-136380.
Silver trading range for the day is 196190-213460.
Silver gains on tightening inventories, strong industrial demand and its inclusion on the U.S. critical minerals list.
Fed’s Collins says supported rate cut but it was a ‘close call’
