Gold Prices Drop in Bangalore: 24k, 22k Rates Down by Rs 1,600/100g; Silver Holds Steady for 4th Day

Gold prices in Bangalore saw a slight decline today, as market participants shifted their attention to the outcome of the Federal Reserve meeting, expected later in the day. The announcement will reveal the extent of the anticipated rate cut, a key factor likely to influence bullion prices significantly in the coming days. Investors are closely monitoring the central bank's policy decisions, as they could shape the near-term outlook for gold and other precious metals.

As of 18th December 2024, the 22-carat gold rate in Bangalore is currently at Rs. 71,350 after falling to Rs. 150 per 10 grams. Meanwhile, the 24-carat gold fell by Rs. 160 to retail at Rs. 77,840. In a similar line, 18-carat gold rates in Bangalore dipped by Rs. 120 to retail at Rs. 58,380.

For higher quantities, 100 grams of 22-carat yellow metal costs Rs. 7,13,500 after shedding Rs. 1500. and 24-carat gold slipped by Rs. 1600 per 100 grams to cost Rs. 7,78,400.

What is Yellow Metal Up to in Recent Days?

Gold began this week on a subdued note. Prices initially gained slightly but later extended losses, reflecting muted momentum in the domestic gold market, which is currently experiencing lower demand. As a result, gold prices in Bangalore have been moving within a flat range.

On the global front, all eyes are on the Federal Reserve's monetary policy decision, which is expected later today. The Federal Open Market Committee (FOMC) began its meeting, and its outcome will provide key insights into the U.S. central bank's interest rate path.

Adding to the intrigue, U.S. retail sales in November surpassed expectations, signaling stronger consumer activity. Combined with recent inflation data, which has been running warmer than anticipated, this suggests that the Federal Reserve might adopt a cautious approach going forward. For now, gold's performance remains tied to the Fed's decision and its impact on the U.S. dollar and treasury yields. A dovish stance from the Fed could provide support to gold prices, while a more hawkish approach might exert downward pressure.

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 observed no movement from the last 4 days and currently stand at Rs. 92,500 for 1 kilogram. Similarly, the price for 100 grams of silver costs Rs. 9,250. White metal prices have shown stability following consecutive declines earlier this week.

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 0.02%, at Rs. 76,859 per 10 grams. Similarly, silver futures for the March 5th, 2025, expiry are also on the downside today, experiencing losses of 0.25%, trading around 90,644.

Spot Gold And Silver Rates On December 18

According to a recent report by Reuters, spot gold prices rose marginally by 0.1%, reaching USD 2,648.43 per ounce as of 02:37 GMT, due to cautious optimism among investors. Meanwhile, U.S. gold futures remained steady at USD 2,663.20 per ounce, indicating a pause in significant movements ahead of key economic updates. In contrast, spot silver prices dipped slightly, losing 0.2% to trade at $30.46 per ounce, suggesting a mixed performance in the precious metals market.

The slight rise in gold prices comes as investors shift their focus to the upcoming monetary policy decision by the U.S. Federal Reserve. The central bank is widely expected to implement its third interest rate cut of the year, aiming to navigate ongoing economic uncertainties.