Bangalore Gold Rates (Dec 2-8): 24K, 22K, and 18K Prices Drop 0.3%; Weekly Recap & Market Outlook Ahead

Over the past week, gold prices in Bangalore have exhibited some major fluctuations, with a cumulative decline of 0.35% in both 24-carat and 22-carat gold rates this week. However, in the last two days, no major changes have been observed, and the prices are maintaining a stable level.

As of December 8, 2024, the 24-carat gold stood at Rs. 77,620 per 10 grams, while the 22-carat gold rate in Bangalore was priced at Rs. 71,150 per 10 grams. The 18-carat gold rate in Bangalore is currently at Rs. 58,220 per 10 grams.

Weekly Price Movement:

Factors Influencing Gold Rates in Bangalore:

• The U.S. dollar's performance this week has been on the upside, which weighed down gold and silver greatly.

• The geopolitical tensions, particularly involving Russia and Ukraine, have influenced gold demand and prices.

• Since it's the wedding season going on in India, demand for gold and silver is particularly high during this time of the year, which impacts the gold prices.

• The release of the November U.S. job growth report, which indicated a gradual easing in the labor market, supports the possibility of further interest rate cuts by the Federal Reserve.

• Nonfarm payrolls released by the US were higher than expected, which could lead to short-term bearish pressure on gold prices.

Market Outlook for the Upcoming Week:

Market analysts anticipate continued volatility in gold prices due to the reports on job openings and employment figures that are expected to provide insights into the Federal Reserve's monetary policy outlook, potentially affecting gold prices.

The upcoming Federal Reserve meeting on 18 December will be crucial, as any rate cuts from the central bank will have a major impact on the commodity market. Investors are likely to monitor upcoming economic data closely, particularly employment and inflation figures, for further clues about the Fed's monetary policy direction.

As per an analysis report by FXStreet, if the main job growth number (NFP) is below 200k, it would show that the U.S. labor market is slowing down further. This could lead to more interest rate cuts by the Federal Reserve after December. Lower rates would likely support gold prices, as gold doesn't earn interest, while putting pressure on the U.S. dollar.

Spot Gold and Spot Silver Prices:

According to Reuters, spot gold rose 0.2% to $2,636.31 per ounce by 1:41 p.m. ET (1841 GMT) on Friday. In contrast, spot silver experienced a decline of 1.1%, settling at $31 per ounce, although it managed to post gains for the week. Meanwhile, U.S. gold futures closed 0.4% higher at $2,659.60 per ounce.