On Thursday, December 19, 2024, gold prices experienced a noticeable decline across various Indian cities. The price of 24-carat gold dropped to ₹7,800.3 per gram, reflecting a decrease of ₹180, while 22-carat gold was priced at ₹7,151.3 per gram, down by ₹170. Over the past week, 24-carat gold has seen a decrease of 2.02%, and in the last month, the price has fallen by 1.02%. Meanwhile, the silver price remained stable at ₹95,500 per kilogram, showing no change from yesterday’s rates.
The fluctuations in the prices of these precious metals are a result of several intertwined global and domestic factors. Investors and consumers alike are keenly observing these movements, as they are impacted by everything from international economic conditions to domestic market trends.
Price Breakdown Across Major Cities
Delhi
In the national capital, Delhi, the price of 24-carat gold today stands at ₹78,003 per 10 grams, down from ₹78,053 on December 18, 2024. A week ago, on December 13, 2024, the price was significantly higher at ₹79,633 per 10 grams. The downward trend in gold prices reflects broader market adjustments that have also impacted other precious metals. Silver in Delhi remains at ₹95,500 per kilogram, unchanged from yesterday but down from ₹99,700 per kilogram last week.
Chennai
Chennai saw a similar reduction in gold prices. Today, 24-carat gold is priced at ₹77,851 per 10 grams, slightly down from ₹77,901 on December 18, 2024. A week ago, the price was ₹79,481 per 10 grams. Silver, however, remained stable at ₹102,600 per kilogram, unchanged from yesterday but down from ₹106,800 per kilogram last week. The silver rate in Chennai reflects a broader trend seen in most cities, where silver has seen a gradual decline over the past few weeks.
Mumbai
In Mumbai, the financial capital of India, gold is priced at ₹77,857 per 10 grams, down from ₹77,907 yesterday and ₹79,487 last week. Silver in Mumbai is priced at ₹94,800 per kilogram, stable from yesterday but down from ₹99,000 last week. These trends in Mumbai are consistent with those seen in other major cities, reflecting a general softening of precious metal prices across the board.
Kolkata
The gold price in Kolkata is ₹77,855 per 10 grams today, a slight decrease from ₹77,905 on December 18, 2024. Last week, the price of gold was ₹79,485 per 10 grams. Silver in Kolkata remains at ₹96,300 per kilogram, unchanged from yesterday but lower than the ₹100,500 per kilogram rate last week. This marks a consistent downward trend in silver prices across the country.
MCX Futures: Gold and Silver Outlook
At the time of publishing, the February 2025 MCX futures for gold were trading at ₹75,880 per 10 grams, showing a slight drop of ₹1.008. Similarly, the July 2025 MCX futures for silver were trading at ₹91,885 per kilogram, down by ₹2.157. These futures prices suggest a cautious outlook for the precious metals market, as market participants adjust their positions in response to current price trends and market sentiment.
Factors Affecting Gold and Silver Prices
The movement of gold and silver prices is influenced by a variety of factors, both domestic and international. On the global front, the demand for gold continues to be shaped by geopolitical uncertainties, shifts in currency values, and inflationary pressures. The value of the US dollar, in particular, has a significant impact on gold prices, as a stronger dollar generally makes gold more expensive in other currencies, which can dampen demand.
Domestic factors such as local demand, the price of imported gold, and government policies also play crucial roles in determining the rates of these precious metals. India is one of the largest consumers of gold globally, and local demand, particularly during festivals and wedding seasons, often drives price fluctuations. Moreover, any changes in government import duties or tax policies can cause rapid shifts in gold and silver prices.
Interest rates and inflation are also major factors in the price dynamics of precious metals. When interest rates rise, the opportunity cost of holding gold (which does not generate income) increases, leading to a drop in demand and, consequently, a fall in prices. On the other hand, when inflation rises, investors often flock to gold as a hedge against the eroding value of fiat currencies, pushing prices higher.
The Role of Major Jewelers and Market Speculation
Another important element influencing gold and silver prices is the role played by major jewelers and investors. These market participants often drive short-term price movements, especially in response to changes in consumer sentiment or shifts in global economic outlooks. Additionally, speculation in the commodities markets, particularly through futures contracts, can have a significant impact on pricing trends.
Conclusion
As gold and silver prices continue to fluctuate in response to both global and domestic factors, buyers, investors, and jewelers will need to stay vigilant. The interplay between global economic trends, government policies, and market sentiment means that prices could continue to experience volatility. For now, consumers looking to buy gold or silver should keep a close watch on market developments and consider both short-term price trends and long-term investment potential when making purchasing decisions.
In conclusion, while the prices of gold and silver have seen a decline over the past few days, the future of these precious metals remains uncertain, influenced by a wide array of global and local factors. Whether this trend will continue into the new year or reverse remains to be seen, but for those in the market, it’s important to stay informed of these ongoing changes.
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