Big Jump In Bangalore Gold Rates On Dec 5: 22K/100g Gold Up Rs.1,000; Silver Follows with Rs.1,000/kg Rise

Gold prices in Bangalore have surged today with a striking rise as compared to yesterday's rates. After a day of stagnation, the market witnessed a sharp rally, mainly due to a 0.10% decline in the U.S. Dollar Index. This weakening of the dollar typically boosts gold prices, as the yellow metal becomes more attractive to investors. Market participants are now keenly awaiting the release of the U.S. payroll data on Friday. The data could significantly influence the Fed's decision on potential rate cuts during its next policy meeting.

On the 5th of December, the 22-carat gold price in Bangalore spiked by Rs. 100 per 10 grams to cost Rs. 71,400. While the 24-carat, or pure gold, jumped by Rs. 1100 per 10 grams to settle at Rs. 77,890. The more affordable 18-carat gold climbed by Rs.80 per 10 grams, now priced at Rs.58,420.

Just like that, the bulkier quantity of gold, 100 g of 24-carat gold, is priced at Rs. 7,78,900, and the 22-carat gold per 100 grams now retails at Rs. 7,14,000. Similarly, 100 grams of 18-carat gold costs Rs. 584,200.

Yellow Metal Regains Its Momentum

Over the past 30 days, gold prices In Bangalore and other cities in India, there have been a lot of undulations. A cumulative decline of about 3% was observed during this period. This week, gold has been trading in a muted manner, largely influenced by global market cues. Adding to the subdued sentiment, domestic demand for gold has also been lackluster.

In October 2024, the World Gold Council released a report highlighting that India's gold demand has dropped to a four-year low. The report projected that gold demand in 2024 could range between 700 and 750 metric tons, the lowest since 2020 and down from last year's 761 metric tons. Despite the ongoing wedding season, traditionally a strong period for gold purchases in India, there has been no significant uptick in demand.

Gold in the global market traded flat on Thursday, with only slight changes observed. Investors are keenly awaiting upcoming U.S. economic data, which is expected to provide more clarity on the Federal Reserve's monetary policy trajectory. As markets continue to seek direction, both domestic and international dynamics are playing a critical role in shaping gold price trends.

Gold Prices In Other Major Indian Cities

All cities in India are observing a similar rise in Yellow metal prices. Here are rates in some of the major cities:

Silver Prices in Bangalore Today

Silver prices in Bangalore witnessed a sharp increase today, due to a surge in the value of the white metal. The price for 1 kg of silver rose significantly by Rs. 1,000, bringing the cost to Rs. 92,000. Similarly, the rate for 100 grams of silver climbed to Rs. 9,200.

Gold And Silver Future Prices On MCX

On the Multi Commodity Exchange (MCX), gold futures for delivery on February 5, 2025, are trading higher by 0.03% at Rs. 77,115. Similarly, silver futures, set to mature on March 5, 2025, have risen by 0.02%, trading at Rs. 93,308.

Spot Gold and Spot Silver Rates

According to a recent Reuters report, gold prices held steady on Thursday, as market participants awaited the release of U.S. payrolls data. This key economic indicator is expected to shed light on the Federal Reserve's next moves regarding monetary policy.

Spot gold remained largely flat, trading at $2,647.17 per ounce as of 03:26 GMT, while U.S. gold futures experienced a slight decline of 0.2% to $2,671.10 per ounce. Meanwhile, spot silver saw a dip of 0.3%, settling at $31.21 per ounce, the report noted. The much-anticipated payrolls report, scheduled for release on Friday, will be closely followed by the U.S. inflation data for November, expected next week. Both sets of data are likely to significantly influence market sentiment and the Federal Reserve's decisions regarding interest rates.