Bangalore Gold Rates Skyrocket Rs. 18,000 in Just One Week; Gold Prices Weekly Review (Dec 30 - Jan 5)

The new year has kicked off with a surge in profitability for the gold market. Over the first three days of the year, there was a noticeable rise in enthusiasm, as gold prices in Bangalore witnessed a significant jump of Rs. 18,000 per 100 grams for 24-carat gold. This price surge marked a turning point, pushing gold prices to a three-week high. Investors and traders are closely watching the market, anticipating further fluctuations, as this upward momentum could signal positive sentiment for the yellow metal in the coming weeks.

Gold Price In Bangalore Today

The gold market today stayed subdued with little movement, and the prices stayed stable. The 22-carat gold rate in Bangalore is currently at Rs. 72,150. Similarly, the 24-carat gold rate in Bangalore is priced at Rs 78,710. And just like that, the 18-carat gold rate is now Rs.59,030.

Gold Price Movement This Week

Major Factors Driving the Sharp Rally in Gold Prices

Gold prices have rallied sharply this week due to several key factors. Below are four major reasons contributing to the surge in gold prices:

1. Geopolitical Tensions

On New Year's Day, Russia launched a drone strike on Ukraine's capital, Kyiv, causing fatalities and extensive property damage, as reported by Reuters. Alongside that, the Israeli military conducted airstrikes in a suburb of Gaza City, reportedly killing several Palestinians. These escalating conflicts have driven investors toward gold, which is often considered a safe-haven asset during times of geopolitical uncertainty.

2. Central Bank Purchases

A World Gold Council survey suggests that central banks are likely to increase their gold purchases in 2025. Fxstreet reported that record purchases by central banks have significantly boosted demand for gold as central banks use gold to diversify their reserves and hedge against economic and geopolitical risks.

3. US Dollar Index and Its Impact

The US dollar index this week surged to a two-year high of 109.13 before retreating to 108. However, the recent pullback in the dollar index has allowed gold prices to stabilize and resume their upward trend.

4. US Treasury Bond Yields

According to FXStreet, gold found support from subdued yields on 2-year and 10-year US Treasury bonds, which remained at 4.24% and 4.56%, respectively. Lower bond yields reduce the opportunity cost of holding gold, making it a more attractive investment option for market participants.

Silver Prices In Bangalore Today

Silver prices in Bangalore today have registered no major movement today after a surge of Rs. 2000 per kilogram. Currently, 1 kg of silver costs around Rs. 91,500 per kilogram, and the price for 100 grams of silver is currently Rs. 9,200 on January 5th, 2025.