Gold Prices In Big Cities Fall On December 24; Why 24K, 22K, 18K Yellow Metal Losing Shine, & Should You Buy?

Gold prices in India slipped by at least Rs 1,000 on Tuesday, December 24, after staying on a subdued level for two consecutive days. Meanwhile, silver prices were unchanged. This is despite MCX gold and silver prices witnessing mild gains, tracking international prices. Investors continue to be cautious owing to the Fed's fewer rate cuts outlook in 2025. The month of December has broadly been in the red for gold prices. What is impacting yellow metal and is it the time to buy-on-dips?

Gold Prices In India:

22K gold prices in India dipped by Rs 1,000 to Rs 7,09,000 in 100 grams, while 10 grams gold price slipped by Rs 100 to Rs 70,900. Further, 24K gold prices also shed Rs 1,000 in 100 grams and Rs 100 in 10 grams to Rs 7,73,500 and Rs 77,350 respectively. The low-carat 18K gold prices were down by Rs 800 to Rs 5,80,100 in 100 grams and lower by Rs 80 to Rs 58,010 per 10 grams.

Gold Prices In Major Cities:

Gold Prices In Chennai: While prices of 24K and 22K gold prices declined by Rs 100 each in 10 grams to Rs 77,350 and Rs 70,900, the price of 18k gold price was down by Rs 50 to Rs 58,600.

Gold Prices In Mumbai: Prices of 24K and 22K gold stood at Rs 77,350 and Rs 70,900 per 10 grams each on December 24, down by Rs 100 each. However, 18K gold is cheaper in Mumbai than compared to Chennai, to Rs 58,010 per 10 grams which dipped by Rs 80.

Gold prices in Mumbai are similar in cities like Bangalore, Kolkata, Kerala, and Hyderabad.

Gold Prices In Delhi: Here, 18K gold price witnessed a steeper fall by Rs 90 to Rs 58,130 per 10 grams. While prices were down by Rs 100 each to Rs 77,500 and Rs 71,050 in 24K and 22K of 10 grams.

Silver Prices In India:

Unlike gold, silver prices were muted on December 24. The price of silver in India currently stands at Rs 91.40 per gram and Rs 91,400 per kilogram. Nonetheless, silver was expensive in cities like Chennai, Hyderabad and Kerala at Rs 98,900 per 1 kg.

MCX Gold, Silver Prices:

MCX gold with February 2025 expiry, traded higher by Rs 136 or 0.2% to Rs 76,280 per 10 grams, which was near its day's high at Rs 76,349 per 10 grams.

Additionally, MCX silver prices with March 2025 expiry, rose by Rs 213 0r 0.24% to perform at Rs 89,331 per 1Kg, which was near its day's high of Rs 89,573 per 1Kg.

Spot Gold Prices:

As per Trading Economics data, gold rose above $2,610 per ounce on Tuesday amid subdued holiday-season trading. Investors continued to assess the Federal Reserve's outlook for next year, factoring in a slower pace of rate hikes in 2025 after the Fed signalled fewer reductions. However, this view was challenged by softer-than-expected US PCE inflation, suggesting the possibility of more rate cuts, which benefits non-yielding gold.

What Is Impacting Gold Prices In India?

As per Rahul Kalantri, VP of Commodities, Mehta Equities, the U.S. consumer confidence index fell in December month and dropped to 104.7 against November month's revised reading of 112.8. The sharp decline in consumer confidence during the holiday season increased worries about the health of the economy but was unable to support the safe-haven demand for precious metals. The dollar index and the U.S. 10-year bond yields surged once again amid weakness in the global equity markets and hawkish FED guidance for further rate cuts. However, geo-political tensions and bargain buying at lower levels are supporting gold and silver prices.

Looking ahead, Kalantri added, "Gold has support at $2600-2581 while resistance at $2640-2657. Silver has support at $29.42-29.20 while resistance is at $29.92-30.10. In INR gold has support at Rs75,880-75,640, while resistance at Rs 76,270-76,480. Silver has support at Rs 88,450-87,880, while resistance at Rs89,630-90,100."

Should You BUY Gold, or Silver?

According to Nirmal Bang's technical outlook report, gold prices are expected to rise. Traders can buy at 76000 with a stop loss of 75750 for the target at 76350-76600.

On silver, the brokerage's note said, silver prices are expected to rise. One can buy at 89000 with a stop loss of 88200 for the target at 90000-90500.