Gold Rates Surge Post-Fed Cut: Check Prices Across Major Cities
Gold prices extended their record-breaking rally on Thursday morning, with 24-carat gold climbing Rs 10 to trade at Rs 1,30,320 per 10 grams, according to MCX/GoodReturns data. Silver followed suit, gaining Rs 100 to hit Rs 1,99,100 per kg, just shy of the psychological Rs 2 lakh mark.
The modest daily gains mask a blistering 2025 run: Gold is up 70% year-to-date in rupee terms, while silver has more than doubled (+113% globally in dollar terms), making it the best-performing major asset class this year—beating equities, real estate, and even Bitcoin in rupee returns.
City-wise prices for 10 grams of 24-carat and 22-carat gold on December 11 morning are as follows:
- Mumbai: 1,30,320 | 1,19,460 - Delhi: 1,30,470 | 1,19,610 - Kolkata: 1,30,320 | 1,19,460 - Chennai: 1,31,250 | 1,20,310 - Bengaluru: 1,30,320 | 1,19,460 - Hyderabad: 1,30,320 | 1,19,460
Silver prices per kg are: - Delhi/Mumbai/Kolkata: Rs 1,99,100 - Chennai: Rs 2,07,100
Global cues suggest that the US Federal Reserve cut rates by 25 basis points, the third cut of the cycle, but struck a hawkish tone. Only two cuts are now projected for 2026, down from four, citing inflation that “remains somewhat elevated” and a resilient job market. Normally, this would pressure gold. However, spot gold rose 0.3% to $4,242.39/oz, while February futures jumped 1.1% to $4,271.30/oz—both within striking distance of the all-time high of $4,300 hit last week.
Real yields remain negative in many economies, and central banks bought another 75 tonnes in November (900+ tonnes YTD). Geopolitical risks, such as tensions in the Middle East and between the US and China, also contribute to the gold rally. Silver’s industrial boom, driven by sectors like solar, EVs, and 5G, is fueling its separate rally. Spot silver touched a fresh record of $62.67/oz before settling at $62.31 (+0.9%).
For Indian investors at Rs 1,30,000+ levels, the expert consensus remains overwhelmingly bullish for the medium-to-long term. Here are some analyst recommendations:
- Motilal Oswal: Target of Rs 1,40,000–1,45,000; Buy on dips - HDFC Securities: Target of Rs 1,38,000; 10–15% portfolio allocation - Prithvi Finmart (Commodity): Target of Rs 1,42,000+; SIP in gold ETFs/SGBs - Kotak Securities: Target of Rs 1,35,000–1,40,000; Accumulate on corrections
The best ways to buy gold right now, considering cost and tax efficiency, include:
- Sovereign Gold Bonds: 2.5% interest, 5-yr early exit, no LTCG tax if held to maturity; ideal for long-term (5–8 yrs) - Gold ETFs: 0.5–1% TER, instant liquidity, LTCG 12.5% after 24 months; suitable for flexibility and SIP - Digital Gold: 3% spread + GST, high liquidity, same tax as physical; good for small, regular purchases - Physical (coins/bars): 3–6% + 3% GST, medium liquidity, LTCG 12.5% after 36 months; suitable for gifting and ceremonial purposes - Jewellery: 10–25% making charges, low liquidity, same tax as physical; avoid for pure investment
A quick takeaway for December 2025 is to avoid chasing the top and instead wait for 5–8% dips (Rs 1,20,000–Rs 1,23,000 zone). Paper gold, such as the SGB Series IV (opening Dec 16–20), offers 2.5% interest and capital gains tax exemption. Silver, currently at Rs 1.99 lakh/kg, is still 20% below global fair value on industrial demand.
Gold isn’t just glittering at new highs; it’s cementing its role as India’s favorite hedge in an uncertain world. At Rs 1,30,320, it’s expensive, but history suggests it rarely stays “expensive” for long when central banks and geopolitics are on your side. Buy the dips and hold the course.
