Gold Prices Steady in India as Investors Await US Federal Reserves Policy Decision
Gold prices in India remained largely stable on Monday, December 16, 2024, as investors closely monitored developments around the U.S. Federal Reserve’s monetary policy decision, set to be announced later this week. The market`s focus remains on the Federal Reserve`s next steps, particularly regarding its interest rates, which could have a significant impact on gold prices in the coming months.
On the domestic front, the prices for 22K gold stood at ₹7,140 per gram, while the price of 24K gold was ₹7,789 per gram. The gold market in India has experienced slight fluctuations in recent days, largely influenced by global factors, including the U.S. economic data and the ongoing geopolitical tensions. As the global economy navigates through inflationary pressures, central bank policies have become a critical factor in shaping gold`s price outlook.
Gold Prices Across India
In terms of pricing, the 22K gold was available for ₹71,140 per 10 grams, and 24K gold for ₹77,890 per 10 grams across major cities like Chennai, Mumbai, and Delhi. In Chennai, the price of 22K gold per gram was ₹7,140, with 24K gold priced at ₹7,789 per gram. The 18K gold in Chennai stood at ₹58,950 per 10 grams, while in Mumbai, the 18K gold price was slightly lower at ₹58,420 for 10 grams.
In Delhi, the prices for 22K and 24K gold were ₹7,155 and ₹7,804 per gram, respectively. Similarly, in cities such as Kolkata, Hyderabad, Bangalore, Pune, and Kerala, gold prices mirrored those in Chennai and Mumbai. The market saw consistent rates across these regions, indicating that gold’s appeal remains strong amid global economic uncertainty.
MCX Gold and Silver Prices
At the time of writing, MCX gold futures for February 2025 delivery traded at ₹77,000 per 10 grams, a minor dip of ₹136 or 0.18% from the previous day. The bullion had reached an intraday low of ₹76,959 per 10 grams. The futures market has witnessed some volatility recently, with gold prices fluctuating due to mixed global cues and rising inflationary pressures.
MCX silver prices, with a March 2025 expiry, dropped by ₹163 or 0.18%, trading at ₹90,838 per kilogram, which also marked a low of ₹90,750 per kilogram for the day. This downward pressure on silver prices has been primarily attributed to profit-booking and a stronger Dollar Index.
Global Gold Prices and Economic Factors
Globally, spot gold traded above $2,650 per ounce, showing some resilience despite the ongoing corrections in the Indian market. Investors are anticipating that the U.S. Federal Reserve will announce a 25 basis point interest rate cut at its final meeting of 2024. This decision, if made, would make non-yielding assets like gold more attractive, potentially boosting its price further.
Gold has always been a safe-haven asset, and its appeal is particularly strong amid rising geopolitical tensions and economic uncertainty. The recent volatility in the Middle East, particularly the air and ground attacks in Gaza, has further elevated gold`s status as a s secure investment. Additionally, expectations of a Fed rate cut have prompted many investors to buy gold as a hedge against currency fluctuations.
Outlook for Gold Prices
The outlook for gold in India and globally remains tied to the actions of central banks, particularly the U.S. Federal Reserve. With inflationary concerns and geopolitical risks persisting, gold is likely to maintain its attractiveness as a hedge against financial instability. The World Gold Council has also projected that gold`s growth may slow down next year due to factors such as central bank policies and economic conditions in key markets like the U.S., China, and India.
As investors await the Federal Reserve`s policy announcement, gold`s price movement will likely be influenced by the broader economic landscape, inflationary trends, and geopolitical developments.
