Gold Prices In Big Cities Fall Massively On December 31; What Is Impacting 24, 22K, 18K Prices On Tuesday?

Gold prices in India declined massively by up to Rs 4,400 on Tuesday, December 31, the day of New Year's Eve. A similar trend was seen in silver which fell by Rs 2,000 in a single day. The performance is despite a surge in gold and silver trading at MCX and the global market. The start of this holiday-shortened trading week has been volatile in precious metals as investors monitor signals for rate cuts in 2025 and geopolitical uncertainties.

Gold Prices In India:

24K gold prices dropped by Rs 4,400 in India to Rs 7,75,600 per 100 grams, while 10 grams gold price slipped by Rs 440 to Rs 77,560 per 10 grams. Further, 100 grams and 10 grams of gold prices in 22K shed Rs 4,000 and Rs 400 to Rs 7,11,000 and Rs 71,100 respectively. Additionally, 18K gold prices in India are down by Rs 3,200 in 100 grams to Rs 5,81,800 and lower by Rs 320 in 10 grams to Rs 58,180.

Gold Prices In Major Cities:

Gold Prices In Chennai: 18K gold prices dropped by Rs 3,000 to Rs 5,87,500 per 100 grams, while the prices were down by Rs 4,400 and Rs 4,000 to Rs 7,75,600 and Rs 7,11,000 for the same. 10 grams gold price is at Rs 58,750 in 18K, at Rs 77,560 in 24K, and at Rs 71,100 in 22K.

Gold Prices In Mumbai: Here, 18K gold prices declined massively by Rs 3,200 in 100 grams to Rs 5,81,800, while prices dipped by Rs 4,400 to Rs 7,75,600 in 24K and down by Rs 4,000 to Rs 7,11,000 in 18k. The price of gold in 10 grams is at Rs 58,180 in 18K, Rs 77,560 in 24K, and at Rs 71,100 in 22K.

The prices of gold in Mumbai are similar in cities like Pune, Kerala, Hyderabad, Bangalore and Kolkata.

Gold Prices In Delhi: In the national capital, gold is expensive. On December 31, 100 grams of gold in 18k plummeted by Rs 3,200 to Rs 5,83,000, while the same yellow metal is lower by Rs 4,400 to Rs 7,77,100 in 24K and down by Rs 4,000 to Rs 7,12,500 in 22K. The price of 10 grams of gold is currently at Rs 58,300 in 18K, Rs 77,710 in 24K, and at Rs 71,250 in 22K.

Silver Prices In India:

1Kg silver price witnessed sharp decline of RS 2,000 on December 31 to Rs 90,500, while the cheapest silver is down by Rs 2 to Rs 90.50 per 1 gram. In cities like Chennai, Hyderabad and Kerala, silver continues to stay expensive at Rs 98,000 per 1kg.

MCX Gold, Silver Prices:

MCX gold with February 2025 expiry currently surged by Rs 77 or 0.10% to trade at Rs 76,337 per 10 grams, which is near its intraday high of Rs 76,387 per 10 grams.

On the other hand, MCX silver price with March 2025 expiry, tumbled by Rs 266 or 0.30% to trade at Rs 87,265 per 1kg, which was near its intraday low of Rs 87,101 per 1kg.

Spot Gold Prices:

Spot gold prices ranged between $2,600 to $2,610 an ounce on Tuesday, after its two consecutive sessions decline, indicating slow movement in the week.

What is impacting Gold Prices?

As per Trading Economics, traders are closely monitoring signals about the US economy, President-elect Donald Trump's tariff policies, and the Federal Reserve's monetary policy outlook, all of which could influence gold's trajectory. Resilient labour market data from payroll counts and signs of persistent inflation have recently led FOMC members to project fewer rate cuts next year, which weighed on gold prices in Q4 as the hawkish Fed reduced the appeal of non-yielding bullion.

Nonetheless, gold is set to close the year with a sharp 27% gain, its best annual performance since 2010. The rally was driven by increased demand for safe-haven assets amid the Ukraine, Gaza, and Lebanon conflicts, as well as missile strikes from Iran. Gold also gained from robust central bank purchases, mainly by the PBoC, reaching a record high of $2,790 in September, as per Trading Economics.

Rahul Kalantri, VP of Commodities, Mehta Equities said, gold and silver extended their fall in a highly volatile session after the U.S. pending home sales surged in November month and a steady dollar index. The U.S. pending home sales grew 2.2% in November month against the 1.8% growth in October month. The U.S. pending home sales are up by 6.9% for the year. The dollar index is also trading steady amid pressure in the global equity markets and trading near 2-year highs. The U.S. 10-year bond yields are also sustaining above 4.50% levels and limiting gains of precious metals.

Kalantri added, gold is near its key support level of $2,584 per troy ounce and if prices fell below these levels could show further weakness in the upcoming sessions. Silver breached its support level of $28.80 per troy ounce and could test its next support level of $28.80 per troy ounce in the short term. Gold has support at $2588-2572 while resistance at $2622-2634. Silver has support at $28.70-28.55 while resistance is at $29.15-29.34. In INR gold has support at Rs 76,000-75,820, while resistance at Rs 76,470-76,650. Sliver has support at Rs 86,880-86,100 while resistance at Rs 88,230-88,700.