Gold Rate in India On Track To Reclaim Rs 1.3 Lakh Mark; Will Silver, Gold Continue Its Rally? 27 Nov Outlook

Gold Rate in India: Gold and silver prices in India surged on Wednesday, tracking a strong safe-haven rally triggered by rising expectations of a US Federal Reserve rate cut and weaker economic data overseas. With the ongoing wedding season keeping domestic demand buoyant, all eyes will be on how gold and silver prices move on Thursday, November 27.

The recent gold price rally is fuelled by the release of pending US macroeconomic data. Additionally, there are expectations that the US Fed will cut rates in December. Back in India, gold rates have surged nearly 60% since the beginning of the year.

Gold Rate in India

The price of 24 karat gold in India has increased by Rs 87 per gram to Rs 12,791 per gram on Wednesday, November 26. Whereas, the rate of 22 karat gold in India has surged around 80 per gram to Rs 11,725 per gram. Likewise, the price of 18 karat gold in India has jumped around Rs 65 per gram to Rs 9,593 per gram. Gold rate in India has surged over 60% since the beginning of the year, and touched its all-time high mark in October during Diwali.

Silver Rate in India

The price of silver in India also increased significantly on Wednesday. Silver rate in India increased to Rs 169 per gram and to Rs 1,69,000 per kilogram. There has been a massive surge in silver prices due to their strong industrial demand and supply side constraints.

Gold, Silver MCX

MCX Gold Futures with December expiry closed at Rs 1,25,944 per 10 gram on Wednesday. Whereas, MCX silver futures with December expiry closed at Rs 1,61,491 per kilogram. The international gold rate on Wednesday jumped closed to its record-high level and stood at $4,150 per ounce, as per Trading Economics.

US retail sales data increased weak consumer spending momentum in October, whereas, producer priced data showed that inflation remained as per the expectations.

Gold, Silver Price Outlook

The prices of gold and silver may see some correction on Thursday, after consecutive three day gains. However, the rising US Fed rate cut expectations may continue to fuel the strong momentum in the precious metals market.

In the long-run, "gold's trajectory will depend on developments such as deeper monetary easing, geopolitical disruptions, or a sustained drop in real yields-all of which could reinforce momentum. On the flip side, a firmer U.S. dollar, rising real interest rates, or cooler central-bank demand may limit gains or trigger corrective phases," stated Ross Maxwell, Global Strategy Lead at VT Markets.