Bangalore Gold Rates Weekly Recap (16-22 Dec); Prices Fall Over 1% This Week

Gold rates in Bangalore underwent the worst week so far, with 3 major drops in prices seen in the last seven days with a cumulative decline of 1.4% in both 24-carat and 22-carat gold rates this week. After a big jump yesterday, no major changes have been observed, and the prices are maintaining a stable level. As of December 22, 2024, the 24-carat gold stood at Rs. 77,450 per 10 grams, while the 22-carat gold rate in Bangalore was priced at Rs. 71,000 per 10 grams. The 18-carat gold rate in Bangalore is currently at Rs. 58,090 per 10 grams.

Similarly, silver prices in Bangalore are currently at Rs. 91,500 per kilogram, following significant declines experienced this week.

Weekly Price Movement

Factors Influencing Gold Rates in Bangalore

Economic indicators, especially from the US, significantly impact gold prices. For instance, lower-than-expected inflation data, like the US PCE Price Index, tends to weaken the US dollar, making gold more attractive.

Gold prices often move inversely to the US dollar. A weaker US dollar generally supports gold prices, while a stronger dollar can put downward pressure on gold. Higher US Treasury yields, especially above the 4.50% mark, make gold less appealing as it does not pay interest, leading investors to shift towards more lucrative assets like bonds.

A decrease in US jobless claims (such as the drop to 220K in mid-December) suggests economic resilience, which can dampen gold's appeal as a safe-haven investment.

Market Outlook for the Upcoming Week

According to the Fxstreet analysis report, gold has had a successful year, reaching an all-time high of USD 2,790 and increasing by 25%, driven by geopolitical tensions and looser monetary policies globally.

A more hawkish stance from the Federal Reserve in the upcoming weeks, along with persistent inflation concerns and uncertainty about tariffs, could put downward pressure on gold prices.

The performance of the Chinese economy will be key in influencing gold demand in 2025, as both economic recovery or slowdown in China will affect investor sentiment and precious metal demand.

Spot Gold and Spot Silver Price Movement

According to the latest data from Reuters, spot gold closed Friday's trading session with a notable gain of 1.2%, reaching USD 2,623.18 per ounce. U.S. gold futures also saw a positive movement, settling 1.4% higher at USD 2,645.10 per ounce. Meanwhile, spot silver experienced a strong surge, rising 1.8% to end the day at USD 29.54 per ounce.