Gold prices dipped 0.91% on December 19, 2024, closing at ₹75,696 per 10 grams, according to data from the Multi Commodity Exchange (MCX). This decline marks a significant drop compared to the previous day, reflecting the yellow metal’s recent market volatility.
Despite the dip, Gold prices remain 19.96% higher than their levels at the start of the year. Compared to the same time last year, prices are up by an impressive 21.87%, indicating sustained investor interest in gold as a hedge against inflation and economic uncertainty.
City-Wise Gold Prices
Gold rates vary across Indian cities due to factors like transportation costs, local taxes, and demand. Here’s an overview of prices for December 19, 2024:
- Mumbai: In the financial capital, the price of 24-carat gold stood at ₹75,080, while 22-carat gold was priced at ₹71,500. Both categories recorded a 0.90% decline from the previous day.
- Delhi: In the national capital, 24-carat gold was priced at ₹75,290, while 22-carat gold traded at ₹71,700. Similar to Mumbai, both prices dropped by 0.90%.
- Chennai: Gold prices in Chennai were slightly lower, with 24-carat gold at ₹74,240 and 22-carat gold at ₹70,700. Both rates saw a 0.91% decrease.
- Bengaluru: Bengaluru recorded prices of ₹75,440 for 24-carat gold and ₹71,850 for 22-carat gold, reflecting a 0.91% decline.
For detailed rates in other cities, you can visit our dedicated gold price page.
Gold Futures Update
Gold futures expiring on February 5, 2025, closed at ₹75,651 per 10 grams on December 19, marking a 1.31% decline compared to the previous day. Futures prices often provide insights into market sentiment and investor expectations for gold’s future performance.
The decline in both spot and futures prices comes as investors reevaluate gold’s role amid fluctuating global economic conditions.
Gold Market Performance and Historical Context
The current price of gold is still below its all-time high of ₹79,362, which was achieved on October 30, 2024. Over the past year, gold has demonstrated remarkable resilience despite market volatility, reflecting its status as a safe-haven asset during uncertain times.
Demand for the precious metal has fluctuated, with the second quarter of 2024 seeing a 6% decline to 929 tonnes, primarily due to a drop in jewellery demand. However, central bank gold purchases increased by 6%, reaching 183 tonnes, according to the World Gold Council’s report.
The consistent buying by central banks underscores gold’s importance in diversifying reserves and mitigating currency risks.
Factors Influencing Gold Prices
Gold prices are influenced by a mix of domestic and international factors, including:
- Global Economic Trends: Rising global interest rates, inflationary pressures, and economic uncertainties have significantly impacted gold prices.
- US Dollar Strength: The strength of the US dollar, as indicated by the dollar index reaching 108.03, has added pressure on gold prices. A stronger dollar makes gold more expensive for holders of other currencies.
- RBI Interventions: On the domestic front, interventions by the Reserve Bank of India (RBI) to manage forex reserves and stabilize the rupee indirectly affect gold prices.
Investor Outlook and Insights
Gold remains a preferred asset for long-term investors despite short-term price volatility. Analysts believe that future demand may stabilize as central banks continue their gold-buying spree, supporting prices in the medium to long term.
Amit Pabari, Managing Director at CR Forex Advisors, shared his insights, stating, “Gold’s recent dip is largely driven by global economic factors, including the strong dollar and rising bond yields. However, local factors like IPO inflows and RBI interventions might provide support, keeping prices stable around the ₹75,000–₹76,000 range.”
Riya Singh, Research Analyst at Emkay Global, highlighted structural challenges that could affect gold demand. “While RBI actions might temper volatility, weak export performance and rising global interest rates add to gold’s vulnerability. Investors should closely monitor the resistance level of ₹76,000 and support near ₹74,000 for future trades,” she said.
Outlook for Gold
The gold market is expected to remain dynamic, driven by both global and domestic factors. Central bank purchases, geopolitical tensions, and economic data releases will likely influence gold’s trajectory in the coming months.
As global investors navigate the uncertain economic landscape, gold’s role as a safe-haven asset remains critical. While short-term dips may occur, the long-term outlook for gold remains positive, with prices expected to stay robust amid continued demand from central banks and retail investors alike.
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