On the morning of December 17, the Indian bullion market experienced a notable decline in the prices of both gold and silver, while this downturn is primarily attributed to a combination of weak global signals and a wave of profit booking by investors. Major cities across the country have reported a reduction in gold rates,. Potentially offering a window for buyers, although market volatility remains a key characteristic.
In the capital city of Delhi, the price of 24-carat gold has fallen. To ₹134000 per 10 grams, with 22-carat gold priced at ₹122840 per 10 grams. Other significant urban centers like Mumbai, Chennai, and Kolkata have also seen a similar dip in gold prices. In Mumbai, 24-carat gold is trading at ₹133850 per 10 grams, and 22-carat gold at ₹122690 per 10 grams, while chennai and Kolkata mirror these prices, with 24-carat gold at ₹133850 per 10 grams and 22-carat gold at ₹122690 per 10 grams. Hyderabad also recorded 24-carat gold at ₹133850 per 10 grams.
Gold Rates in Other Key Locations
The trend of declining gold prices is consistent across several other important cities in India. In Pune and Bengaluru, 24-carat gold is priced at ₹133850 per 10 grams, and 22-carat gold at ₹122690 per 10 grams. Ahmedabad and Bhopal show 24-carat gold at ₹133900 per 10 grams and 22-carat gold at ₹122740 per 10 grams. Jaipur, Lucknow, and Chandigarh reflect prices similar to Delhi, with 24-carat gold at ₹134000 per 10 grams and 22-carat gold at ₹122840 per 10 grams, while this widespread reduction indicates a uniform market pressure, largely influenced by overarching global factors.
Key Drivers Behind the Price Drop: Global Cues and Profit Booking
The current fall in gold prices can be primarily attributed to two significant factors. Firstly, there has been a decline in the international spot price of gold, which currently stands at $4,277, while 42 per ounce. Global economic uncertainties, central bank policies, and geopolitical events influence the demand and supply of gold in international markets, directly impacting domestic prices. When gold becomes cheaper globally, its prices tend to decrease in the Indian. Market as well, creating a ripple effect that's felt across all major cities.
Secondly, a crucial factor is investor profit booking. The domestic market has witnessed a substantial 65% increase in gold prices this year, making it an attractive asset for investors. When prices reach a certain peak, many investors opt to sell their holdings to secure their gains. Such large-scale selling increases the supply in the market, putting downward pressure on prices. This is a common market behavior observed after a significant bullish run, as investors capitalize on their accumulated profits.
Silver Prices Also Witness a Decline
Mirroring the trend in gold, silver prices also experienced a fall on Wednesday morning. The price of silver has dropped to ₹199000 per kilogram. In international markets, the spot price of silver is now $63. 02 per ounce, indicating a potential decrease in global demand or an increase in supply for the white metal, while both gold and silver prices are influenced by a combination of domestic and global factors. Local demand, festive seasons, import duties, and the rupee-dollar exchange rate play critical. Roles in determining the prices of these precious metals in the Indian market.
Future Outlook and Expert Projections
Experts suggest that if global conditions and the rupee-dollar exchange rate remain relatively stable or. If the rupee weakens, gold prices could potentially rise by 5 to 16 percent in 2026. A weaker rupee makes gold imports more expensive, thereby increasing its price in the domestic market. Conversely, a stronger rupee could make imports cheaper. The 65% surge in gold prices this year has Importantly attracted investors, and it. May continue to be a safe haven investment, especially during times of economic uncertainty. However, investors are advised to closely monitor global economic trends and central bank policies for informed decision-making.
