Gold prices in India have shown a sharp upward trajectory, climbing for the second straight day. On December 26, the cost of 24K gold in major metro cities increased by ₹2,800 per 100 grams, following a ₹1,000 surge the previous day. With silver prices also reclaiming significant levels, precious metals are back in focus as safe-haven assets.
The Price Surge: City-Wise Breakdown
Gold rates have risen uniformly across India’s big cities, with noticeable gains in both 22K and 24K varieties.
- Mumbai: 24K gold is priced at ₹7,773 per gram, while 22K is at ₹7,125.
- Delhi: Rates stand slightly higher, with 24K at ₹7,788 per gram and 22K at ₹7,140.
- Chennai: 24K gold is priced at ₹7,773 per gram, with 22K at ₹7,125.
These rates indicate a broad-based trend rather than localized demand, reflecting underlying global and domestic factors.
Bullet Points on Current Prices
- 24K gold (100 grams): ₹7,77,300
- 22K gold (100 grams): ₹7,12,500
- 18K gold (100 grams): ₹5,83,000
Silver prices, too, have shown an uptick, with 1kg prices crossing ₹1,00,000 in cities like Chennai and Hyderabad.
Global and Domestic Drivers Behind the Rally
Several factors are influencing the sudden surge in gold and silver prices. Globally, spot gold traded above $2,620 per ounce, driven by geopolitical concerns and central bank actions. Domestically, a weaker rupee and local market dynamics have added to the upward trend.
International Dynamics
- The U.S. dollar index remains strong, but safe-haven buying is supporting gold.
- Geopolitical tensions, particularly involving Russia and Ukraine, are driving demand.
- Anticipation of a dovish monetary policy from the Federal Reserve in 2025 is also buoying prices.
Domestic Market Trends
The depreciating rupee is playing a significant role in inflating the prices of imported gold. As a result, Indian markets are seeing heightened demand, even as trading volumes remain limited during the holiday season.
Statistical Snapshot: 10-Gram Prices Over the Week
| Date | 24K Gold (₹) | 22K Gold (₹) | 18K Gold (₹) |
|---|---|---|---|
| December 24 | 75,450 | 68,750 | 56,200 |
| December 25 | 76,730 | 71,000 | 58,090 |
| December 26 | 77,730 | 71,250 | 58,300 |
This table highlights the volatility and rapid movement in prices over just three days.
Investor Sentiment and the Way Forward
Analysts suggest that gold and silver prices could see continued volatility into the new year. Rahul Kalantri of Mehta Equities remarked that central bank buying, geopolitical uncertainty, and easing monetary policies are expected to keep prices elevated.
Spotlight on Support and Resistance Levels:
- Gold support: $2,610–$2,591, resistance: $2,644–$2,660.
- Silver support: $29.35–$29.20, resistance: $29.85–$30.10.
In the Indian market, gold has support at ₹75,980 and resistance at ₹76,650.
