Sharp Drop In Bangalore Gold Prices On Dec 6: 22K/100g Slips Rs.2,500, Silver Stays Flat

Gold prices in Bangalore saw a significant drop on Friday, December 6, 2024, as the U.S. dollar index strengthened, putting downward pressure on the yellow metal. The Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.5% is also expected to have an impact on the commodity market, which is already witnessing mixed movements alongside the equity market.

As of today, the 22-carat gold rate in Bangalore has fallen by Rs.250 per 10 grams, now costing Rs.71,150. Similarly, the 24-carat gold prices in Bangalore experienced a notable drop of Rs. 270 per 10 grams, bringing the retail price to Rs. 77,620. Following the trend, 18-carat gold rates also decreased by Rs.200 per 10 grams, now priced at Rs.58,220.

For bulk purchases, the decline is more pronounced. The price of 100 grams of 24-carat gold has dropped by Rs.2,700, now retailing at Rs.7,76,200. Meanwhile, 100 grams of 22-carat gold slipped by Rs. 2,500, bringing the cost to Rs. 711,500.

Bangalore Gold Market Turns Red:

The gold market in Bangalore witnessed a downturn today, with prices continuing to reflect global economic pressures. Experts remain optimistic, suggesting that the market may be on the path to revival. A surge in demand could trigger an upside for gold prices in the near future, providing relief to investors and traders.
Currently, several global factors are weighing heavily on gold prices. The U.S. dollar index has risen by 0.11%, standing at 105.83, exerting downward pressure on the yellow metal. Market participants are also awaiting the release of U.S. payroll data later today, which is expected to provide critical insights into economic health and influence the Federal Reserve's policy decisions. These data points will play a key role in determining whether the Fed proceeds with further rate cuts in its upcoming policy meeting scheduled for later this year. As gold prices remain subdued, investors are advised to closely monitor both domestic and international market trends.

Gold Prices in Other Major Indian Cities

All cities in India are observing a similar Drop in yellow metal prices. Here are rates in some of the major cities:

Silver Prices in Bangalore Today

Silver prices in Bangalore remain unmoved today after gaining Rs 1000 in the previous session. At present, 1 kilogram of silver in Bangalore currently retails at Rs.92,000. Similarly, the price for 100 grams of silver stands at Rs. 9,200 on December 6th, 2024.

Gold And Silver Future Prices On MCX

On the Multi Commodity Exchange (MCX), gold futures for delivery on February 5, 2025, are trading higher by 0.03% at Rs. 76,718. Similarly, silver futures, set to mature on March 5, 2025, have risen by 0.65%, trading at Rs. 93,029.

Spot Gold and Spot Silver Rates

According to a recent Reuters report, gold prices saw a modest increase on Friday, but they are still on track for a second consecutive week of decline, as market participants await the release of U.S. payrolls data, which is expected to offer insights into the future direction of interest rate cuts. According to a recent report by Reuters, spot gold gained 0.3%, rising to $2,638.66 per ounce by 0346 GMT, after earlier hitting its lowest level since November 26. Despite the gain, gold prices are down approximately 0.4% for the week. Meanwhile, U.S. gold futures rose by 0.5%, reaching $2,661.00 per ounce. On the other hand, spot silver dipped slightly by 0.1%, trading at $31.3 per ounce, though it has gained more than 2% so far this week. The market is closely watching these price movements in anticipation of the upcoming data, which could influence future trading trends and sentiment.