Gold prices in India are likely to be influenced by a spike in demand and upcoming US inflation data which will give further clarity on the US Federal Reserve's rate cut trajectory. Fed monetary policy is going to be announced next week. Major experts believe that global central banks like the ECB, SNB, BoC and Fed are likely to trim rates. Additionally, the chaos in Middle East's geopolitics will continue to further raise appeal for non-yielding assets like gold.
Gold Prices In India:
In the early hours of December 11, 24K of 10 grams and 100 grams of gold rose by Rs 100 and Rs 10 to trade at Rs 7,86,100 and Rs 78,610, respectively. Meanwhile, 10 grams of 22K gold is priced at Rs 72,060, and the same gold in 18K is priced at Rs 58,960.
The price of cheapest gold in India is at Rs 7,206 per gram for 22 karat gold and at Rs 7,861 per gram for 24 karat gold (also called 999 gold).
Silver Prices In India:
The price of silver in India is currently at Rs 96.60 per gram and at Rs 96,600 per kilogram. Silver price in India is determined by international prices, which move in either direction. Other than that it also depends on currency movement of the rupee against the dollar. If the rupee falls against the dollar and international prices remain stable, silver will become more expensive.
MCX Gold, Silver Prices:
On December 10, MCX gold prices ended at Rs 78,367 per 10 grams, up by Rs29 or 0.04%. At the same time, MCX silver prices closed at Rs 95,502 per 1kG, up by Rs 305 or 0.32%.
The bullion and silver at MCX are for February and March 2025 expiry.
Spot Gold Prices:
Gold climbed above $2,700 per ounce on Wednesday, advancing for the third consecutive session to reach a two-week high, supported by expectations of loose monetary policies from major central banks and increased demand for safe-haven assets, as per Trading Economics.
What Will Drive Gold Prices In India And Globally?
As per Trading Economics data, traders are focused on upcoming US inflation data, which could solidify expectations of a third Federal Reserve rate cut next week. Such a move would lift gold's appeal by reducing the cost of holding non-yielding assets. In addition, major central banks, including the ECB, SNB, and BoC, are expected to lower rates this week.
China has further bolstered sentiment with its announcement of plans to adopt an appropriately loose monetary policy next year. The metal also gained momentum after the PBoC resumed gold purchases following a six-month pause. Meanwhile, heightened tensions in the Middle East, driven by reports of the Syrian regime's collapse and ongoing Israeli airstrikes, continued to enhance gold's safety appeal, the data further said.
Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, gold prices exhibited minor movement following yesterday's strong rally, trading sideways as participants awaited Wednesday's US CPI data. The data is expected to provide clarity on the future trend. While the overall bullish outlook for gold remains intact, the sharp pre-event rally suggests caution.
To investors, Trivedi said, traders are advised to maintain strict stop-loss levels near ₹77,250 on MCX. On Comex, $2,540 will act as a robust support level as the market braces for the next major directional cue.
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