Gold prices rallied by ₹2,033 to ₹1,23,100 per 10 grams in the domestic futures trade on Monday, extending gains for the fourth consecutive session, tracking firm global cues and a softer US dollar.
On the Multi Commodity Exchange (MCX), gold futures for December delivery appreciated by ₹2,033, or 1.7%, to ₹1,23,100 per 10 grams.
Similarly, the February 2026 contract increased by ₹1,945, or 1.59%, to ₹1,24,400 per 10 grams.
Silver futures also gained strong momentum. The white metal for December delivery rallied by ₹3,802, or 2.57%, to ₹1,51,530 per kilogram.
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The March 2026 contract surged by ₹4,244, or 2.83%, to ₹1,54,100 per kg on the MCX.
In the international market, Comex gold futures rose by USD 72.17, or 1.8 %, to USD 4,081.97 an ounce -- their highest level in two weeks.
"Gold rose more than 1% to around USD 4,080 per ounce on Monday, reaching a two-week high amid mounting concerns over the US economy.
"The yellow metal also benefited from a pullback in the dollar, which makes dollar-denominated commodities cheaper for foreign buyers," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading flat at 99.61, lending support to the bullion prices.
He added that market participants remain divided on whether the US Federal Reserve will cut interest rates in December, with traders pricing in roughly a 67% chance of a quarter-point reduction.
Meanwhile, the US Senate appeared on track to pass a deal to reopen the government, with enough Democratic senators reportedly backing the package.
Silver futures for December delivery broke out of their consolidation range, jumping nearly 3% to USD 49.52 per ounce.
Market experts said traders increased bets for an interest rate cut by the US Federal Reserve after weak private jobs data and the University of Michigan's consumer sentiment index fell to its lowest level in nearly three and a half years.
According to the World Gold Council (WGC), gold exchange-traded funds (ETFs) witnessed inflows of 54.9 tonnes in October, largely driven by demand from Asia and North America, however Europe recorded outflows.
"Signs of an end to the US government shutdown and easing trade tensions between US-China could dampen the safe-haven asset in the near-term.
"Investors will focus on the US Consumer Price Index (CPI) data, scheduled for release on Thursday, for further cues on the Federal Reserve's monetary policy path, an expert said
