Gold Prices In India Outlook On December 12, 2024: How Will 24K, 22K, 18K Prices Perform On Thursday?

Gold prices in India will react to US inflation data that rose highest in seven months to 2.7% in November 2024, which was higher than expected. However, as per the latest consensus, the market continues to expect a rate cut from the US Federal Reserve next week, despite the high inflation. Amidst high inflation, gold prices tend to find a lift.

But if the Fed chooses to pause next week due to high inflation, the chances of the dollar gaining momentum will be high which could backfire against non-yielding assets like gold. However, for now, expectations of a rate cut are on the cards, and spot gold has crossed $2,715 an ounce on Wednesday, gaining traction which could influence yellow metal prices globally including India on December 12.

Gold Prices In India:

In the early hours of December 12, the price of gold in India was currently at Rs 7,286 per gram for 22-karat gold and Rs 7,948 per gram for 24-karat gold (also called 999 gold).

24K gold price of 10 grams is at Rs 79,480, while 22K and 18K gold prices are at Rs 72,860 and Rs 59,620.

Gold prices have been rising for three consecutive days in India. On December 11, the 24K gold price was by Rs 870 in 10 grams and up by Rs 8,700 in 100 grams, while the 24K gold price surged by Rs 820 in 10 grams and Rs 8,200 in 100 grams in a single day on December 10th. On December 9th, the prices are up by Rs 160 in 10 grams and up by Rs 1,600 in 100 grams.

Silver Prices In India:

On the other hand, in the early hours of Thursday, silver prices were down by Rs 0.10 to Rs 100. 1 kg silver was at Rs 95,400, while 100 grams and 10 grams silver is priced at Rs 9,540 and Rs 954.

MCX Gold, Silver Prices:

After trading hours of December 11th, MCX gold with February 2025 expiry, stood at Rs 79,0000 per 10 grams. While MCX silver price with March 2024 expiry, stood at Rs 97,860 per 1Kg.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said that gold traded with minor gains as Comex prices once again approached the $2,700 mark, recovering strongly from the $2,600 support range seen a week ago.

Spot Gold Prices:

As per Trading Economics data, gold rose past $2,715 per ounce on Wednesday, gaining traction to extend its two-day rally after the lack of upside surprises for US inflation consolidated bets of an incoming rate cut by the Fed. Headline inflation inched higher to 2.7% in November, as expected by markets, and annual core inflation remained unchanged at 3.3%.

What To Expect In Gold Prices On December 12?

Trading Economics data highlighted that rate traders increased positions that reflect a 25bps rate cut by the Fed next week. Still, lingering concerns that price growth may remain stubborn next year limited a further increase, as annual services inflation and other key underlying inflation gauges like shelter inflation, remained firmly above the 4.5% mark. In turn, the Bank of Canada cut its key rate by 50bps for a second decision, and the ECB and SNB are both expected to extend their cutting cycles. Additionally, the PBoC resumed gold purchases after a six-month pause and pledged to shift its monetary policy stance to be more accommodative next year.

Trivedi said, "In MCX, gold is expected to trade within a range of ₹77,400-₹79,250, with volatility likely to remain elevated ahead of the data release."