Gold and silver surged sharply in India on December 3, 2025, as the rupee weakened further against the US dollar and global market expectations turned supportive. Analysts say the rally in precious metals is being driven by a mix of currency stress, softening US economic data, and rising bets on a Federal Reserve rate cut next week.
Both metals opened with strong momentum and held firm during morning trade on the Multi Commodity Exchange (MCX).
Gold Opens Higher as Rupee Breaches 90/USD
Gold futures opened 0.6% higher at ₹1,30,550 per 10 grams, compared to the previous close of ₹1,29,759. By 1 pm, prices hovered around ₹1,27,950, still up nearly 0.48%.
Dr. Renisha Chainani, Head of Research at Augmont, noted that the rupee’s sharp slide past ₹90 per dollar has intensified pricing pressure. Weak trade flows and uncertainty around a pending trade agreement with the US have further weighed on the currency.
She added that gold is gaining strength globally as US economic data reflects a mild slowdown. With dovish signals from Federal Reserve officials, traders now estimate an 89% probability of a 25-basis-point rate cut at the upcoming meeting.
Bullish Trend Strengthens; Prices Near Lifetime Resistance
Ponmudi R, CEO of Enrich Money, said gold broke the previous day’s highs and touched ₹1,30,950, edging closer to its lifetime resistance level at ₹1,32,294.
He explained that even if global gold prices cool slightly, the domestic market will likely remain elevated due to the weaker rupee: “Gold is imported, so a weaker USD/INR is the core driver of this surge.”
Silver Hits Fresh All-Time High
Silver outperformed gold with a strong start, opening 1.21% higher at ₹1,83,799 per kg, compared to ₹1,81,601 earlier. By 1 pm, it traded around ₹1,77,495, up 0.51%.
Ponmudi described silver as “exceptionally bullish,” supported by firm global prices and the depreciating rupee. The metal hit a new all-time high of ₹1,84,727, indicating robust market sentiment.
A decisive move above ₹1,84,000 could push silver into the ₹1,86,000–₹1,88,000 range, he added.
Near-Term Outlook: Precious Metals Expected to Stay Firm
Both gold and silver continue to draw strength from:
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The rupee’s persistent weakness
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Anticipation of a US rate cut
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Softening global economic indicators
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Strong investor demand
Analysts believe the current setup favours precious metals, and prices are likely to remain elevated in the near term.
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