Gold prices in India are nearing record highs, fueled by expectations of a US Federal Reserve rate cut and a weakening US dollar. As of November 28, 2025, gold prices are approximately ₹2,700 away from their all-time peak, stirring speculation about whether the precious metal will reach a new zenith.

Current Gold Rates in India

On November 28, 2025, gold rates in major Indian cities displayed a mixed trend. For 24-carat gold, prices ranged from ₹12,774 to ₹12,851 per gram depending on the city. 22-carat gold was trading around ₹11,709 to ₹11,780 per gram. These figures indicate a slight dip in some cities compared to the previous day, while others experienced gains.

Factors Influencing Gold Prices

Several factors are contributing to the bullish sentiment surrounding gold.

• US Federal Reserve Rate Cut Expectations: The anticipated US Federal Reserve rate cut is a primary driver. Lower interest rates reduce the opportunity cost of holding gold, a non-yielding asset, making it more attractive to investors. Market expectations for a December rate cut have surged, with some tools showing an 81% probability.
• Weakening US Dollar: A weaker dollar makes gold more affordable for buyers using other currencies, potentially increasing international demand.
• Geopolitical Tensions: Ongoing geopolitical tensions, such as the Russia-Ukraine conflict, continue to support gold's safe-haven appeal. Uncertainty in the global economy often leads investors to seek refuge in gold, driving up demand and prices.
• Central Bank Buying: Central banks are significant gold holders, and their buying patterns can influence prices. Diversifying reserves with gold is seen as a way to strengthen economies and currencies.

Potential Impact of a US Fed Rate Cut

Historically, gold prices have risen significantly in the 24 months following US Federal Reserve interest rate cuts. For instance, notable gains were observed after rate cuts in 2000, 2007, and 2019. While the magnitude of these gains can vary depending on economic conditions, gold consistently serves as a hedge against economic instability.

Expert Predictions and Forecasts

Major global banks predict that gold's upward trajectory will continue into 2026. These forecasts consider factors such as central bank buying, inflation pressures, and concerns about the US economy.

• Bank of America forecasts gold to average $4,538 per ounce in 2026, with a potential climb to $5,000.
• HSBC expects gold to trade between $3,600 and $4,400 in 2026.

Potential Challenges

Despite the bullish outlook, several factors could temper gold's rise.

• Stronger Dollar: A re-emergence of dollar strength would make gold more expensive for international buyers, potentially limiting demand.
• Hawkish Fed Signals: If the Federal Reserve signals that it will hold back or cancel rate cuts due to surprising inflation data, it could dampen enthusiasm for gold.
• Risk-On Sentiment: Strong equity market rallies could draw investors away from safe-haven assets like gold.

Conclusion

Gold prices in India are currently trading near record highs, spurred by expectations of a US Federal Reserve rate cut and a weak dollar. While analysts are optimistic about gold's potential to reach new peaks, several factors, including dollar strength and changes in Fed policy, could influence its trajectory. Investors are advised to monitor these factors and stay informed about global economic developments to make informed decisions about gold investments.