Gold prices in India remained stable on Monday, December 23, 2024, for the second consecutive day, following significant volatility in the previous week. Despite this stability in gold, silver prices experienced a slight dip on the same day, even as global gold and silver prices began to recover from their recent one-month and three-and-a-half-month lows. The recovery in gold prices was partially attributed to profit-taking in the dollar and bond yields, which provided some support to the precious metal.
Gold Prices in India
As of Monday, the price of 24-karat gold stood at ₹77,450 per 10 grams, while 22-karat gold was priced at ₹71,000 per 10 grams. The price for 18-karat gold was ₹46,472 per gram. On a monthly basis, gold prices have seen a decline of nearly 1%.
Last week, 24-karat gold prices dropped from ₹78,000 per 10 grams to below ₹77,500 by December 22, marking a decline fueled by stronger selling pressures. On December 20, gold prices hit their lowest point for the month, with 22-karat gold priced at ₹70,400 and 24-karat gold at ₹76,800.
Gold Prices in Major Indian Cities
Chennai: In Chennai, 22-karat gold is priced at ₹7,100 per gram, while 24-karat gold is at ₹7,745 per gram. The price for 18-karat gold is ₹5,865 per gram.
Mumbai: Gold prices in Mumbai are consistent with Chennai, with 22-karat gold at ₹7,100 per gram and 24-karat gold at ₹7,745 per gram. 18-karat gold is priced at ₹5,809 per gram.
Delhi: In Delhi, the prices are slightly higher, with 22-karat gold priced at ₹7,115 per gram, and 24-karat gold at ₹7,760 per gram. The price for 18-karat gold is ₹5,822 per gram.
Gold prices in Mumbai are also in line with those in other cities such as Hyderabad, Kolkata, Kerala, Pune, and Bangalore.
Silver Prices in India
In contrast to gold’s steady performance, silver prices experienced a modest decline on December 23. The price of silver dropped by ₹100 per kilogram, bringing it down to ₹91,400. For smaller quantities, the price of 100 grams and 10 grams stood at ₹9,140 and ₹914, respectively. In cities such as Chennai, Hyderabad, and Kerala, silver prices were notably higher, with 1 kg of silver priced at ₹98,900.
Global Market Overview
On the global front, MCX gold for February 2025 delivery saw a slight increase, up ₹58 (0.08%) to ₹76,478 per 10 grams. Similarly, MCX silver for March 2025 delivery surged by ₹569 (0.64%) to ₹88,961 per kilogram. Spot gold prices, according to Trading Economics, hovered around $2,620 per ounce on Monday, maintaining gains from the previous session. The recovery in gold prices was driven by a softer U.S. dollar following a benign PCE inflation report, which renewed expectations for further monetary easing by the Federal Reserve in 2025. This came after the Fed‘s hawkish tone had previously pushed gold prices to a one-month low.
The U.S. dollar index remained steady around 107.7, near its highest level since November 2022, while the U.S. 10-year Treasury yield stabilized at 4.52%.
Factors Influencing Gold and Silver Prices
Explaining the market dynamics, Rahul Kalantri, VP of Commodities at Mehta Equities, attributed the recovery in gold and silver prices to profit-taking in the dollar and bond yields. He highlighted that the dollar index slipped from its two-year highs following a slight decrease in inflation expectations, which supported the precious metals market. Additionally, the release of U.S. personal income and consumer spending data, which missed expectations, further weakened the dollar and contributed to the upward movement in gold and silver prices.
Kalantri also pointed out that escalating tensions between Russia and Ukraine over the weekend could provide additional support to precious metals. Looking ahead, he provided an outlook for gold and silver, with support levels at $2,600–2,581 for gold and $28.88 for silver. Resistance levels were seen at $2,640–2,657 for gold and $29.80–30.00 for silver.
In terms of Indian rupees, gold is expected to have support at ₹76,220–75,040, with resistance at ₹76,670–76,840. Silver, meanwhile, has support at ₹87,850–87,080 and resistance at ₹89,130–89,940.
Outlook for the Coming Weeks
The near-term outlook for gold could face some challenges due to weakening physical demand in key consumer markets such as India, with reports indicating a sharp decline in gold imports for December. However, gold prices have surged by over 27% this year, putting the metal on track for its largest annual gain since 2010. This rally has been driven by U.S. policy easing, strong demand for safe-haven assets, and continued purchases by global central banks.
In conclusion, while gold prices remain volatile, market conditions suggest a cautious recovery, with investors closely monitoring global economic data and geopolitical developments.
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