Gold Market Recap: Prices Hit ₹1,32,200 as Rupee Tumbles on 3 December 2025

Gold prices in India witnessed a spectacular rally on Wednesday, 3 December 2025, providing strong returns for investors. Prices for the yellow metal surged to as high as ₹1,32,200 for 10 grams in the spot market, marking a significant single-day jump. This powerful upward movement was mirrored in the silver market, which also saw its futures hit a new lifetime high on the Multi Commodity Exchange (MCX). The day's trading was characterized by strong buying interest, primarily fueled by a combination of domestic and international factors.

The primary catalyst for this price surge was a sharp depreciation in the Indian rupee, which hit a record low. A weaker rupee makes importing gold more expensive, directly pushing up local prices and amplifying gains from the international market. This domestic factor was compounded by firm global trends that supported bullion prices. On the MCX, gold futures were trading nearly 1% higher, comfortably crossing the ₹1.30 lakh mark. The silver market was even more dramatic, with prices jumping to a fresh record of ₹1,84,727 per kilogram. While some reports during the day noted brief periods of price falls, the overwhelming trend was strongly positive.

This rally comes as the market braces for a crucial global event. All eyes are now turned towards the upcoming U.S. Federal Reserve meeting, where a decision on interest rate cuts is widely anticipated. The outcome of this meeting will be a major determinant for the future direction of global gold prices. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors. The anticipation of a potential rate cut is likely already being priced into the market, contributing to the current bullish sentiment.

For Indian investors and jewelry shoppers, today’s sharp price increase serves as a reminder of gold's sensitivity to currency fluctuations and global economic cues. While the current momentum is strong, the market could see some volatility following the Fed's announcement. Potential buyers may want to watch for any price corrections in the coming days, while existing investors can take heart from the metal's strong performance as a hedge against currency weakness. The record-breaking performance of both gold and silver has reaffirmed their status as key assets in a diversified portfolio.