Gold Prices Crash in Bangalore: 24K Gold Drops by Rs.7,100/100g, Silver Plummets Rs.1,000

Gold prices in Bangalore saw a sharp decline today, hitting their lowest levels in months. The Federal Reserve's recent decisions, including signals of a cautious approach to future rate cuts, have contributed to a rise in U.S. Treasury bond yields and a strengthening U.S. Dollar Index. These factors combined have weighed heavily on gold's performance in both global and domestic markets.

On December 19, 2024, the price of 22-carat gold in Bangalore plunged by Rs.650 per 10 grams, now costing Rs. 70,400. Meanwhile, 24-carat gold saw a drop of Rs.710, bringing its price to Rs.77,130. Similarly, 18-carat gold prices decreased by Rs.530, now priced at Rs. 57,850.

For bulk purchases, the decline was even more pronounced. The cost of 100 grams of 22-carat gold now stands at Rs.7,04,000, reflecting a Rs.6,500 reduction, while 100 grams of 24-carat gold has fallen by Rs. 7,100, retailing at Rs.77,130.

Steep Fall in Gold Market

This week has been pivotal for the bullion market, with significant fluctuations observed in gold prices. Today's sharp decline has pushed gold to its lowest level in months, continuing a downward trend fueled by low demand in the domestic retail market.

Globally, the Federal Reserve's recent meeting, which concluded yesterday, offered key insights into future rate decisions. Federal Reserve Chair Jerome Powell signaled a cautious approach to policy adjustments. As per FXstreet report, the latest dot plot suggests a few rate cuts in 2025 as the Fed chair signaled.

Gold prices faced additional pressure as U.S. real yields rebounded, creating a headwind for the precious metal. Following the Fed's decisions, the 10-year U.S. Treasury bond yield rose, further impacting gold's performance. Meanwhile, the U.S. Dollar Index surged by 0.70% to 107.69, adding to the challenges faced by gold in maintaining its value.

Gold Prices in Major Indian Cities

Most of the Indian cities are experiencing a similar rise in prices. Here are gold prices in some of the major cities:

Silver Prices In Bangalore

Silver rates in Bangalore today Fell Rs. 1000 per kg after remaining stable for last 4 days and currently stand at Rs. 91,500 Similarly, the price for 100 grams of silver costs Rs. 9,150 which fell Rs. 100 .

Gold And Silver Future Price On MCX

On the Multi Commodity Exchange (MCX), the gold futures for February 5th, 2025, delivery are trading lower today by 0.83%, at Rs. 76,014 per 10 grams. Similarly, silver futures for the March 5th, 2025, expiry fell sharply today, experiencing losses of 2.07%, trading around Rs. 88,511

Spot Gold And Silver Rates On December 19

According to a recent report by Reuters, gold prices showed a mixed trend in the markets on Thursday. Spot gold rose by 0.6% to reach $2,603.60 per ounce as of 0608 GMT, recovering after earlier hitting its lowest level since November 18 during early trade. In contrast, U.S. gold futures experienced a decline, trading 1.4% lower at USD 2,616.40 per ounce during the same period. Spot silver also displayed modest gains, inching up by 0.2% to $29.40 per ounce. The rebound in gold prices came after initially dipping to a one-month low earlier in the day. This turnaround was influenced by signals from the Federal Reserve, which hinted at a potential slowdown in interest rate hikes in the coming year. The Fed's indication of a more dovish stance on monetary policy provided support to gold, as lower rates generally boost the appeal of non-yielding assets like precious metals.