Gold Prices In India Outlook On Dec 6, 2024: What Will Drive 24K, 22K, 18K Prices On Friday? RBI Policy Eyed

Gold prices in India are likely to be influenced by international prices as investors will focus on upcoming US data, including weekly jobless claims and Non-Farm Payrolls (NFP). The prices of 24K, 22K, and 18k are expected to be volatile on Friday, December 6, 2024 In India, there is a public holiday in Maharashtra due to Dr. Ambedkar's Mahaparinirvan Day on Friday, however, trading will be opened in bullion at MCX. RBI's policy outcomes will be in focus, where economists are predicting status quo in repo rate for the eleventh time in a row.

Gold Prices In India:

In the early hours of December 6, 24K of 10 grams of gold is up to Rs 77,900, while 22K and 18K prices are at Rs 71,410 and Rs 58,430 per 10 grams. The price of gold in India is Rs 7,141 per gram for 22-karat gold and Rs 7,790 per gram for 24-karat gold (also called 999 gold).

Silver Prices In India:

Meanwhile, the 1kg silver price in India is up by Rs 100 to Rs 92,100. Further, 100 grams and 10 grams of silver are at Rs 9,210 and Rs 921 respectively.

MCX Gold, Silver Prices:

After market hours of December 5th, MCX gold price with February 2025 expiry stood at Rs 76,458 per 10 grams, down marginally. Meanwhile, MCX silver prices with March 2025 expiry closed at Rs 92,365 per 1kg, down by Rs 928 or 0.99%.

Spot Gold Prices:

As per Trading Economics, gold prices dipped below $2,630 per ounce on Thursday, pressured by firming U.S. Treasury yields after a modest rise in weekly jobless claims, as markets focused on upcoming U.S. nonfarm payrolls data for insights into the Federal Reserve's interest rate outlook. Benchmark 10-year Treasury yields rose 0.6%, weighing on bullion, which offers no yield.

Gold Prices Outlook On December 6:

Trading Economics data stated that attention now shifts to Friday's jobs report, anticipated to show an addition of 200,000 jobs in November. A weaker-than-expected result could provide support for gold prices. Traders are assigning a 74% probability to a 25-basis-point rate cut at the Federal Reserve's December meeting, reflecting expectations for policy easing. On Wednesday, Fed Chair Jerome Powell acknowledged the resilience of the U.S. economy while signalling a cautious approach to rate cuts. Gold, which typically benefits in low-interest-rate environments, remains sensitive to these developments.

Furthermore, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, gold traded flat to positive, with $2,640 acting as a crucial support level. Prices are expected to test $2,660-$2,665 in the remaining weekly sessions. Upcoming US data, including weekly jobless claims and Non-Farm Payrolls (NFP), is likely to drive volatility. A lower NFP reading, following weaker ADP employment data, could support bullion prices. In MCX, gold is expected to trade within the range of ₹76,700-₹77,400.

According to Rahul Kalantri, VP of Commodities, Mehta Equities, the ADP report indicated that 146,000 jobs were created in November, below the expected figure of 152,000. The dollar index retreated from its highs after the release of this weaker-than-expected data, lending support to gold and silver prices. The U.S. ISM services PMI fell to 52.1 in November, compared to an anticipated reading of 55.7, further bolstering the appeal of precious metals. The speech by the U.S. Federal Reserve Chairman on Wednesday also contributed to the positive sentiment for gold and silver. Gold has support at $2,628-2,614, with resistance at $2,662-2,674. Silver finds support at $30.98-30.75, with resistance at $31.40-31.62. In INR terms, gold has support at ₹76,880-76,710 and resistance at ₹77,370-77,640. Silver has support at ₹92,550-91,880, with resistance at ₹93,950-94,540.

Also, on December 6th, RBI's policy outcomes will be announced.The Reserve Bank of India (RBI) is likely to keep repo rate unchanged for the eleventh time in a row. The reason by a group of economists is attributed to be the sharp surge in the CPI inflation rate, and the slowest growth in the economy in two years. Further, RBI is predicted to hike its inflation target and lower GDP forecast for upcoming quarter, as per a poll of 30 economists conducted by GoodReturns.In. The easing cycle in key interest rates is estimated to begin from February 2025 policy, which will be the first RBI rate cut in 2 years.