Gold and silver prices have seen an increase due to a weakening rupee and positive global indicators. Both metals showed strength on December 3, 2025, supported by expectations of an upcoming interest rate cut in the United States.
Gold started the day 0.6% higher at Rs 1,30,550 per 10 grams, surpassing the previous close of Rs 1,29,759. By 1:00 pm, gold was trading at Rs 1,27,950, marking a 0.48% gain.
According to Dr. Renisha Chainani, Head of Research at Augmont, the rupee’s significant drop beyond Rs 90 per US dollar has intensified pressure on the currency. Factors such as weak trade flows and uncertainties surrounding a trade agreement with Washington have contributed to the rupee’s decline.
Gold and silver prices have been on the rise as recent economic data from the US indicates a slight slowdown. Expectations of a 25-basis-point rate cut have been reinforced by dovish remarks from Federal Reserve officials, with traders assigning an 89% probability to this decision at the upcoming Fed meeting.
Ponmudi R, CEO of Enrich Money, stated that gold prices surpassed the previous day’s high, reaching a new peak near Rs 1,30,950 and aiming towards the metal’s lifetime resistance zone at Rs 1,32,294. The strengthening of the USD/INR exchange rate towards 90.10 has been a key driver of the strength in local gold prices.
Meanwhile, silver opened 1.21% higher at Rs 1,83,799 per kg compared to the previous close of Rs 1,81,601. By 1:00 pm, silver was priced at Rs 1,77,495 per kg, rising by 0.51%.
Ponmudi highlighted that silver continues to show exceptional bullishness, supported by robust global prices and the weak rupee. The metal reached a new all-time high near Rs 1,84,727, indicating a positive market sentiment.
Both gold and silver are benefitting from a combination of local and global factors. The rupee’s depreciation is driving up imported metal prices, while expectations of a US rate cut are bolstering international gold and silver markets.
Analysts anticipate that with favorable currency movements and supportive global cues, precious metal prices will remain robust in the short term.