The price of gold and silver saw a significant drop on December 3, 2024, across major Indian cities. Gold, which had experienced a rise in previous weeks, showed signs of volatility, reflecting a decrease in market sentiment. The price of 10 grams of 24-carat gold in Delhi today is ₹77,513, a ₹650 drop from yesterday’s rate of ₹78,173. This decrease comes after a slight uptick last week when the price was ₹77,403. Similarly, the rate for 22-carat gold in Delhi stands at ₹71,063 per gram, marking a ₹600 reduction from the previous day.
In comparison to a month ago, gold has gained 3.07%, showing a moderate rise in value over the last 30 days, despite the current downturn. However, over the past week, the price of 24-carat gold has seen a 0.98% drop, indicating a short-term price correction. The silver rate in Delhi is ₹94,000 per kilogram, down ₹500 from ₹94,500 yesterday. In the last week, silver prices have also fluctuated, with a slight increase from ₹92,500 last week to the current rate.
Gold Prices in Other Major Indian Cities
Chennai: In Chennai, the price of 10 grams of 24-carat gold is ₹77,361, down from ₹78,021 on December 2, showing a decline of ₹660. Despite this drop, the current rate is slightly higher than last week’s ₹77,251, suggesting a steady yet fluctuating market in the southern region. Silver in Chennai is priced at ₹102,100 per kilogram, down ₹600 from yesterday’s ₹102,700, and up from last week’s ₹100,600.
Mumbai: In Mumbai, the gold price stands at ₹77,367 for 10 grams, which is ₹660 lower than yesterday’s rate of ₹78,027. However, it is slightly above last week’s ₹77,257. This indicates a marginal decrease in gold prices but a steady trend over the past week. The price of silver in Mumbai has dropped to ₹93,300 per kilogram, down from ₹93,900 yesterday, but it remains above last week’s price of ₹91,800.
Kolkata: Kolkata also witnessed a drop in gold prices, with 10 grams of 24-carat gold priced at ₹77,365 today, down from ₹78,025 on December 2. This decrease of ₹660 is in line with the trends seen in other major cities. However, the price remains slightly above last week’s rate of ₹77,255. The silver price in Kolkata is ₹94,800 per kilogram, down from ₹95,400 yesterday, but slightly higher than last week’s ₹93,300.
MCX Futures: Gold and Silver
On the futures market, the gold February 2025 MCX futures contract is currently trading at ₹76,840 per 10 grams, showing a marginal increase of ₹0.2 from its previous value. This suggests minimal short-term volatility in the gold futures market, with investors remaining cautious amid the recent price drops.
Meanwhile, silver December 2024 MCX futures are trading at ₹89,229 per kilogram, reflecting an increase of ₹0.602. This suggests a modest uptick in silver futures, indicating a potential short-term recovery in the silver market, despite the broader decline in prices across cities.
Factors Influencing Gold and Silver Price Fluctuations
The price of gold and silver is influenced by a wide array of factors, both domestic and international. On the global front, the demand for gold remains a critical determinant, as fluctuations in investor sentiment and industrial usage directly impact prices. Currency fluctuations, especially in the value of the Indian rupee against major currencies like the US dollar, also play a significant role in determining prices in the Indian market. When the rupee weakens, gold becomes more expensive in India, as it is priced in dollars globally.
Interest rates, set by central banks such as the Reserve Bank of India and the US Federal Reserve, can also influence gold prices. Higher interest rates tend to make gold less attractive to investors, as they can earn better returns from other assets, while lower rates may push them towards safe-haven assets like gold.
Government policies, including import duties and taxes, also contribute to the price fluctuations. Recently, changes in India’s import duty on gold have had an impact on the domestic price. Additionally, the global economic environment plays a crucial role—when the global economy faces uncertainty or turmoil, investors often flock to gold as a safe investment, pushing prices higher.
One of the most influential global factors in determining gold prices is the strength of the US dollar. A stronger dollar typically leads to lower gold prices, as it makes the precious metal more expensive for buyers using other currencies. Conversely, when the US dollar weakens, gold prices tend to rise as demand increases from international buyers.
Conclusion
While the price of gold and silver has seen a decline in the past few days, the market remains volatile, with fluctuations expected to continue due to a variety of influencing factors. Investors and consumers alike will need to keep an eye on global economic trends, currency movements, and government policies to understand the longer-term price outlook for both metals. With gold still seeing a positive gain over the past month, there could be opportunities for those looking to invest or purchase in the coming weeks.
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