Gold Rates Today: MCX gold jumps ₹1,500 per 10 grams as US Fed rate cut boosts safe-haven demand

Gold prices made a strong rebound in Thursday's session, December 11, after remaining in a tight range over the last few trading sessions, as demand for safe-haven assets received a boost following the US Federal Reserve’s quarter-point rate cut.
This marked the Fed’s third reduction of the year and brought the policy rate to its lowest level in more than three years.
The February futures contract on MCX opened higher at ₹1,30,250 per 10 grams, compared to the previous close of ₹1,29,796.
By 8:30 PM IST, MCX gold was trading ₹1,159, or 1.12%, higher at ₹1,34,243 per 10 grams. The spot gold price also edged higher, rising 0.20% to $4,234 per ounce.
The gold market is witnessing renewed momentum as the Federal Reserve’s rate cut follows its final monetary policy meeting, even though the central bank did not signal any aggressive easing through 2026.
Fed delivers expected 25 bps, but provides little forward guidance for 2026
Although interest rate expectations fluctuated over the past month, the Federal Reserve’s 25-basis-point reduction in the federal funds rate, bringing it down to the 3.50%–3.75% range, aligned with what markets had been pricing in.
The Fed offered limited forward guidance, with its latest policy statement remaining largely similar to the one issued after the October meeting.
New projections released after the two-day meeting showed that most policymakers anticipate only one rate cut in 2026. Chair Jerome Powell did not provide any indication of when the next reduction might take place.
Meanwhile, US President Donald Trump remarked on Wednesday that the rate cut could have been larger. Trump is expected to name the next Fed chair early next year, with White House economic adviser Kevin Hassett seen as a leading contender.
The Fed’s neutral stance comes as it expects a modest pickup in economic activity next year. GDP growth is projected at 2.3% for 2026, higher than the 1.8% estimate issued in October. Growth is forecast at 2.0% for 2027, slightly above the previous 1.9% projection, while the 2028 estimate remains unchanged at 1.9%.
Investors are now looking out for November’s non-farm payrolls and unemployment rate data, due on December 16, for further clues on the Fed’s next move.
(With inputs from Reuters)
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