As of December 6, 2024, anyone looking to buy gold might have noticed a subtle decline in prices. Gold, particularly the 24-carat variety, saw a dip, marking a standout moment in this week's trading. In Mumbai, prices were pinned at ₹75,550 per 10 grams, while in Delhi, it was slightly higher at ₹75,760. The drop represented a decrease of about 0.33-0.34% compared to previous sessions.
This recent trend is in stark contrast with the highs earlier in the week. For instance, just a day before, the price in Delhi briefly surged past ₹79,000 before retreating. Variations were also noticeable in other cities, with Delhi and Mumbai showing different figures for 24-carat gold, trading at ₹78,073 and ₹77,900 respectively. Meanwhile, prices for 22-carat gold remained relatively stable, hovering between ₹71,410 and ₹71,560 across most cities.
Influential Factors
A few significant elements have been shaping gold prices lately. Globally, all eyes have been on U.S. economic data. The Non-Farm Payrolls (NFP) and weekly jobless claims are particularly important, as expectations around these can cause volatility. A weaker-than-expected NFP might actually lend some support to gold prices.
Moreover, the Reserve Bank of India (RBI) sticking to its 6.5% repo rate for the 11th consecutive time plays a role in domestic market dynamics. This decision influences how investors perceive returns from different investments, including gold.
International trends also leave their mark. For example, spot gold recently dipped below $2,630 per ounce, partly due to rising U.S. Treasury yields. Interestingly, while gold prices saw a dip, silver witnessed a slight uptick, touching $31.36.
Market Outlook
Looking ahead, what can we expect? Analysts at LKP Securities and Mehta Equities have pointed out some critical support levels for gold. They see strong resistance in the range of $2,662 to $2,674. In India, especially, MCX gold futures are projected to have a trading range of ₹76,700 to ₹77,400. The dip seen on December 6 is largely attributed to profit-taking following earlier highs.
Despite the current dip, factors such as geopolitical uncertainties and the ongoing demand for safe-haven assets continue to underpin prices. So, while today might have seen a decrease, the prices could be battered back up depending on the play of these international and domestic factors.
Here's how gold prices stand across some Indian cities:
- Delhi: 22-carat: ₹71,560-72,150, 24-carat: ₹75,760-78,073
- Mumbai: 22-carat: ₹71,410-71,950, 24-carat: ₹75,550-77,900
- Chennai: 22-carat: ₹71,410, 24-carat: ₹74,710-77,900
- Kolkata: 22-carat: ₹71,410, 24-carat: ₹77,900
- Bengaluru: 22-carat: ₹72,300, 24-carat: ₹75,920
