Gold prices in India experienced a significant drop on Saturday, December 14, following a downward trend in international markets. Investors are becoming more cautious as uncertainty surrounds the US Federal Reserve’s potential rate cuts next year.
Sharp Declines Across Major Cities
In Chennai, Mumbai, Kolkata, and Delhi, the prices of 24K gold fell by Rs 9,800 per 100 grams and Rs 980 per 10 grams. Similarly, silver didn’t escape the downturn, with a 1 kg price dropping by Rs 1,000 in just one day.
The impact was felt nationwide, reflecting a widespread sentiment of caution among investors. This marks the second consecutive day of falling gold prices.
Breakdown of Price Drops by Purity
24K gold saw a steep decline, dropping to Rs 7,78,900 for 100 grams and Rs 77,890 for 10 grams. The 22K gold prices weren’t spared either, falling to Rs 7,14,000 for 100 grams and Rs 71,400 for 10 grams. Even 18K gold wasn’t immune, with prices sliding to Rs 5,84,200 for 100 grams and Rs 58,420 for 10 grams.
- 24K Gold:
- 100g: Rs 7,78,900
- 10g: Rs 77,890
- 22K Gold:
- 100g: Rs 7,14,000
- 10g: Rs 71,400
- 18K Gold:
- 100g: Rs 5,84,200
- 10g: Rs 58,420
Trends Over the Past Week
The week started strong for gold, with prices jumping by Rs 1,600 on December 9th. However, momentum shifted quickly with gains of Rs 8,200 on the 10th and Rs 8,700 on the 11th before the recent pullback.
It’s been a rollercoaster ride for investors, making it a challenging time to predict future movements.
City-Specific Insights
Gold Prices in Mumbai: In India’s financial hub, 24K gold dropped by Rs 9,800 to Rs 7,78,900 for 100 grams. The 22K price fell by Rs 9,000 to Rs 7,14,000, while 18K gold dipped to Rs 5,84,200 for the same weight. Silver mirrored this trend, decreasing by Rs 1,000 to Rs 92,500 for 1 kg.
Gold Prices in Delhi: The capital saw 24K gold drop to Rs 7,80,000 for 100 grams, down Rs 9,800. Similarly, 22K gold fell to Rs 7,15,500, and 18K gold was priced at Rs 5,85,400 for 100 grams.
These trends were consistent across other major cities like Hyderabad, Bengaluru, Pune, and Kerala, indicating a nationwide pattern.
Silver’s Parallel Decline
Silver prices followed suit, with a notable drop of Rs 1,000 for a 1 kg pack, bringing the price down to Rs 92,500. In smaller denominations, prices fell by Rs 100 for 100 grams and Rs 10 for 10 grams, settling at Rs 9,250 and Rs 925 respectively. However, some regions like Chennai and Hyderabad maintained higher prices for 1 kg silver.
Global Influences Affecting Local Prices
Internationally, spot gold prices fell below $2,670 per ounce, influenced by rising factory gate costs in the US. This increase has heightened concerns about persistent inflation, affecting investor confidence. Despite these challenges, some support remains from central banks’ dovish stances, hinting at potential small weekly gains.
The consensus among rate traders points to a possible 25 basis points rate cut by the Fed in December. Meanwhile, other central banks like the SNB, BoC, and ECB have also implemented rate cuts, adding to the global uncertainty impacting gold prices.
