Gold prices in India will likely get further boosters from the latest development in Syria and South Korea's leadership crisis. Geopolitical tensions have been a key factor that lifted yellow metal throughout 2024, despite temporary hiccups. That being said, the near-term outlook for yellow metals remains elevated. Currently, 24K of 10 grams of gold is nearing reclaiming the Rs 78,000 mark, after correcting slightly last week.
Gold Prices In India:
On December 9th, 24K gold price in India surged by Rs 1,600 in 100 grams to Rs 7,77,800 in a single day. 10 grams of the same carat soared by Rs 160 to Rs 77,780.
Further, 100 grams and 10 grams of 22K climbed by Rs 150 and 1,500 to Rs 71,300 and Rs 7,13,000. Also, in 18K gold, 100 grams and 10 grams gold was up by Rs 1,200 and Rs 120 to Rs 58,340 and Rs 5,83,400.
Silver Prices In India:
1 kg silver prices in India are currently at Rs 92 per gram and Rs 92,000 per kilogram. The prices are steady.
MCX Gold, Silver Prices:
Although trading in green, MCX gold and silver prices gave up their gains and ended in the red on December 9th, MCX gold price with a February 2025 expiry, was down marginally to close at Rs 77,484 per 10 grams. While MCX silver prices with March 2025 expiry, were down by Rs 82 or 0.09% to end at Rs 95,115 per 1kg.
Spot Gold Prices:
On the other hand, spot gold rose above $2,640 per ounce on Monday, driven by its safe-haven appeal amid renewed geopolitical tensions in the Middle East, as well as the resumption of gold purchases by China, as per Trading Economics data.
What Will Drive Gold Prices?
As per Trading Economics, On Sunday, rebel forces in Syria ousted President Bashar al-Assad, marking an end to the Assad family's 50-year rule and raising concerns about a new wave of instability in the region. Additionally, China's central bank resumed buying gold for its reserves in November after a six-month pause, providing further support for the yellow metal. Moreover, Friday's US jobs report indicated a gradual easing in labour market conditions, allowing the Federal Reserve to cut interest rates again. According to the CME FedWatch tool, markets are now pricing in an 83% chance of a 25bps cut at the Fed's final meeting of the year. This would reduce the opportunity cost of holding the non-interest-paying asset, boosting its appeal.
Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said that rebel forces ousted Syria's President Bashar al-Assad, with reports of Israeli involvement in Syrian territory and Turkey-backed rebel activity escalating tensions. Meanwhile, South Korea's leadership crisis, involving President Yoon Suk Yeol's criminal investigation and impeachment survival, added to global uncertainty. These developments shifted gold's range higher to ₹76,500-₹78,000, with safe-haven demand likely to remain elevated in the near term."
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