Fri Nov 08 06:28:20 UTC 2024: ## Gold Prices Rebound After November Slump, Driven by Fed Rate Cut

**Mumbai, India** – Gold prices in India experienced a rebound on Friday, climbing by Rs 720 to reach Rs 77,700 per 10 grams, according to the Bullion Association. This recovery follows a dip to Rs 76,980 on Thursday, after prices surged in October ahead of festive demand, peaking at Rs 81,500. The local demand fueled a price rally that has since faded, with prices falling to Rs 67,800 after the government reduced customs duty on gold to 6% during the Union Budget.

The rebound in domestic gold prices mirrors a global trend, with prices hitting $2,700 per troy ounce after a recovery from a post-election slump. This surge is attributed to the Federal Reserve’s decision to reduce interest rates by 25 basis points earlier today. This move, aimed at stimulating the economy, is expected to drive demand for gold, as lower interest rates make the precious metal more attractive.

“The quarter percentage point rate cut positions gold prices for a recovery,” an industry expert said. “The lower interest rates will boost liquidity in the system, ultimately pushing demand and prices of the yellow metal higher internationally.”

The recovery in gold futures prices also reflects the optimistic outlook. The futures price for December 5th stood at Rs 77,430 on the Multi Commodity Exchange.

Silver prices also climbed, reaching Rs 92,540 per kg, with futures prices for December 5th at Rs 92,217 on the MCX.

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