The Indian bullion market witnessed a significant surge in both gold and silver prices for the second consecutive day, marking a notable development for investors and consumers alike. This upward momentum is largely fueled by growing expectations of interest rate cuts by the US Federal Reserve, which typically makes non-yielding assets like gold more attractive. As a result, major cities across India have reported substantial increases in the prices. Of these precious metals, with experts forecasting a continued positive trend in the near future.
Gold Prices Experience Sustained Rally
Gold prices have shown a consistent upward trajectory, recording an increase for the second day in a row. In the national capital, Delhi, the price of 24-carat gold saw a rise of. ₹10 per ten grams, while 22-carat gold also increased by ₹10 per ten grams. This daily increment becomes even more significant when considering the cumulative rise over the past two days: 24-carat gold prices have climbed by ₹660 per ten grams, and 22-carat gold prices have surged by ₹610 per ten grams. This trend underscores a solid demand for gold and a strengthening investor confidence in the precious metal.
Current Gold Rates Across Major Cities
The prices of 22-carat and 24-carat gold vary across India's ten major cities, reflecting regional market dynamics and demand. In Delhi, Lucknow, and Jaipur, 22-carat gold was priced at ₹1,19,760 per 10 grams, while 24-carat gold stood at ₹1,30,640 per 10 grams, while cities such as Mumbai, Kolkata, Bengaluru, and Hyderabad reported slightly different rates, with 22-carat gold at ₹1,19,610 and 24-carat gold at ₹1,30,490 per 10 grams. Chennai recorded the highest prices among the listed cities, where 22-carat gold was ₹1,20,710 and 24-carat gold was ₹1,31,680 per 10 grams. Meanwhile, Patna and Ahmedabad saw 22-carat gold at ₹1,19,660 and 24-carat gold at ₹1,30,540 per 10 grams. These city-wise variations provide consumers with options to compare prices before making purchasing decisions.
Silver Also Witnesses Renewed Shine
Mirroring gold's performance, silver prices have also seen a significant uptick, while after a day of stability, silver prices have surged for the second consecutive day. In Delhi, the price of one kilogram of silver has increased by ₹3100 over the past two days. Prior to this, silver had experienced a period of stability following a remarkable five-day rally where its price rose by ₹22000 per kilogram, indicating strong underlying demand. As of December 2nd, silver is trading at ₹1,88,100 per kilogram in Delhi, with today's increase being ₹100 per kilogram. Mumbai and Kolkata are also selling silver at the same rate. However, Chennai stands out with the highest silver prices among the major metropolitan. Areas, at ₹1,96,100 per kilogram, making it the most expensive city for silver purchases.
Factors Driving the Current Rally
The primary catalyst behind the current surge in both gold and silver. Prices is the anticipation of interest rate cuts by the US Federal Reserve. When central banks lower interest rates, the opportunity cost of holding non-yielding assets like gold decreases, making them more attractive to investors, while this often leads to a shift of capital towards precious metals as a safe-haven investment, thereby boosting their demand and prices. Global economic uncertainties further enhance gold's appeal as a hedge against inflation and market volatility, providing additional support to its price rally.
Expert Outlook and Future Trends
Adding to this optimistic outlook, J. P. Morgan has also forecasted a positive trajectory for gold, suggesting that it. Could reach $5,055 per ounce by the final quarter of next year. Similarly, Morgan Stanley predicts that gold prices will hover around $4,400 per ounce by the end of next year. These expert projections collectively indicate a strong likelihood of continued appreciation in gold prices, solidifying its position as an attractive investment option in the foreseeable future.
The market sentiment for gold's future trajectory remains overwhelmingly positive. A survey conducted by Goldman Sachs revealed that approximately 70% of global institutional investors believe that gold will continue its upward trend and reach new highs by 2026, while as of December 1st, gold was trading at its highest level in nearly six weeks, strongly supported by expectations of declining interest rates in the United States. The survey, conducted between November 12th and 14th, involved over 900 clients who shared their expectations regarding gold prices, while around 36% of these clients anticipated gold to surpass $5,000 per ounce by the end of 2026, while another one-third projected prices to range between $4,500 and $5,000 per ounce.
