Gold prices have recorded an increase for the third consecutive day, making it an attractive option for investors. On the morning of December 19, the price of 24-carat gold in the capital Delhi reached 135000 rupees per 10 grams, indicating a significant jump. In Mumbai, the price of 24-carat gold has also climbed to 134850 rupees per 10 grams. This surge isn't solely due to domestic demand but also Importantly influenced by international factors.
Factors Driving Gold Price Surge
Several key factors are contributing to this upward trend in gold prices. Alongside strong domestic purchasing, expectations of potential interest rate cuts by the US Federal Reserve are making gold even more appealing as a safe-haven investment. On top of that, ongoing geopolitical risks globally are pushing investors towards gold, thereby increasing its demand. The international spot price of gold stands at $4,325. 02 per ounce, reflecting its strength on a global scale. These combined elements create a strong bullish sentiment in the gold market, attracting both retail and institutional investors seeking stability amidst economic uncertainties.
Gold Rates in Major Cities
Gold prices vary across major cities in the country. In Delhi, 24-carat gold is priced at 135000 rupees per 10 grams, while 22-carat gold is at 123760 rupees per 10 grams. Mumbai, Chennai, and Kolkata see 22-carat gold at 123610 rupees per 10 grams, and 24-carat gold at 134850 rupees per 10 grams. Pune and Bengaluru also report 24-carat gold at 134850 rupees per 10 grams and 22-carat gold at 123610 rupees per 10 grams. Ahmedabad and Bhopal have 24-carat gold at 134900 rupees and 22-carat gold at 123660 rupees per 10 grams. Jaipur, Lucknow, and Chandigarh mirror Delhi's rates with 24-carat gold at. 135000 rupees and 22-carat gold at 123760 rupees per 10 grams. Hyderabad's rates are 134850 rupees for 24-carat gold and 123610 rupees for 22-carat gold per 10 grams. These city-specific rates provide a comprehensive overview for consumers and investors across India.
The Role of the Federal Reserve
US Federal Reserve Governor Christopher Waller has expressed support for further interest rate cuts, though he also cautioned that policymakers might proceed with prudence. These remarks followed recent US labor data, which indicated further softening in the economy. The unemployment rate in the US has reached a four-year high, and job growth in November failed to compensate for the slowdown observed in October. The prospect of interest rate cuts typically weakens the dollar, making gold cheaper for holders of other currencies and consequently boosting its demand. This monetary policy outlook is a significant driver for gold's current upward trajectory, as lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
Silver Prices Also on the Rise
Mirroring gold's performance, silver prices also witnessed a surge on Friday morning. Silver's price has reached 211100 rupees per kilogram. In international markets, the spot price of silver is $66. 04 per ounce. This jump in silver prices is attributed to several factors, including a supply shortage, increased demand for safe-haven investments, solid retail and industrial demand, significant investment in Silver ETFs, and growing expectations of further interest rate cuts by the Federal Reserve. The multifaceted demand for silver, both as an investment and an. Industrial metal, contributes to its volatility and potential for significant gains.
China's Impact and Future Outlook
The rally in silver has been further bolstered by reports suggesting that China plans to ban silver exports starting from 2026, while if implemented, this move would exert immense pressure on the global silver supply, potentially leading to even higher prices. China's silver reserves are currently at a decade low, underscoring the seriousness of this potential export restriction. So far this year, silver prices have increased by 126 percent, while analysts believe that the silver supply deficit is in its fifth consecutive year, and this trend is likely to continue, which could drive silver prices even higher in the foreseeable future. This situation positions silver as a highly attractive investment option for those seeking secure and high-return investments over the long term, making it a commodity to watch closely in the coming years.
