Gold Prices In Big Cities Jump On Dec-21 After Rs 12,000 Dip In 3 Days; What Is Impacting 24K, 22K, 18K Prices

Gold prices in India made a massive jump across 24K, 22K, and 18K despite volatility in global gold prices after the US Federal Reserve turned hawkish. Gold prices got support on Saturday, December 21, 2024, as geopolitical tensions in the Middle East continued to heighten with Israel now targeting military bases and infrastructure in Yemen, as a retaliation against Houthis. The Middle East region is at boiling point.

Gold Prices in big cities of India surged by as high as Rs 6,500 in 100 grams of 24K on Saturday. This comes after the prices dipped by at least Rs 12,000 in three consecutive days prior. Spot gold prices managed to hold the $2,600 mark, despite ending the week on a bearish tone.

Gold Prices In India:

24K gold prices in India surged by Rs 6,500 to Rs 7,74,500 in 100 grams, while 10 grams gold prices are up by Rs 650 to Rs 77,450. The 100 grams and 10 grams of gold were falling from December 18th to 20th, by Rs 12,000 and Rs 1,200 in 24K.

Meanwhile, on Saturday, gold prices in 100 grams and 10 grams stood at Rs 7,10,000 and Rs 71,000 in 22K, soaring by Rs 6,000 and Rs 600 in a single day. Further, 18K gold prices in 100 grams climbed by Rs 4,900 to Rs 5,80,900, and higher by Rs 490 in 10 grams to Rs 58,090.

Gold Prices In Big Cities:

Gold Prices In Chennai: 24K and 22K gold prices in 10 grams were up y Rs 650 and Rs 600 to Rs 77,450 and Rs 71,000 respectively. However, the gold price of 18k in 10 grams surged from Rs 500 to Rs 58,650.

Gold Prices In Mumbai: The prices of 24K and 22K gold prices in 10 grams are similar to Chennai, at Rs 77,450 and Rs 71,000 which also surged by Rs 650 and Rs 600 on December 21. However, the 18K gold price in 10 grams is up by Rs 490 to Rs 58,090, which is cheaper than Chennai.

Gold prices in Mumbai are also the same in cities like Bangalore, Hyderabad, Kerala, Kolkata, and Pune.

Gold Prices In Delhi: In the national capital, gold prices are much higher. 24K hold price is at Rs 77,600 up by Rs 650, while 22K price is up by Rs 600 to Rs 71,150 in 10 grams. 18k in 10 grams of gold is also up by Rs 500 to Rs 58,220.

Silver Prices In India:

Just like gold, silver prices also shot up on Saturday. 1kg silver price is up by Rs 1,000 to Rs 91,500. In cities like Chennai, Hyderabad and Kerala, silver is expensive at Rs 99,000.

MCX Gold, Silver Prices:

MCX gold price with February 2025 expiry is at Rs 76,432 per 10 grams by the end of the December 20th trading session. Meanwhile, MCX silver with a March 2025 expiry is at Rs 88,443 per 1Kg. The prices surged mildly yesterday.

Spot Gold Prices:

As per Trading Economics, gold traded around $2,600 per ounce on Friday, set for a weekly decline, pressured by a hawkish outlook from the Federal Reserve. On Wednesday, the Fed signalled a more cautious approach to further easing, with dot plot projections indicating only two rate cuts next year. Recent US GDP data also highlighted the economy's resilience, and consumer spending was revised upwards, supporting the case for slower easing.

What Is Impacting Gold Prices And Outlook Ahead?

Trading Economics data said, this outlook has weighed on gold demand, as limited monetary easing reduces the appeal of non-yielding assets like bullion. Meanwhile, gold's near-term outlook could face further challenges from weakening physical demand in key consumer India, with government officials expecting a sharp decline in gold imports in December. Still, the metal has surged about 25% this year, driven by US monetary easing, safe-haven demand, and central bank purchases.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold witnessed minor buying as the $2,600 level on Comex acted as a temporary support, alongside ₹75,500 in the domestic MCX market. The momentum remains volatile due to uncertainties surrounding the interest rate cycle."

Going ahead, Trivedi added, although the Fed decided to keep rates lower, its projections indicated fewer rate cuts going forward, which has maintained pressure on gold prices for the past two days. In the near term, gold prices are expected to trade within a range of ₹74,500 to ₹76,500.