Spot gold price stood at $4,209 an ounce on December 10, as of 5:42 a.m IST, which is a jump of around 0.04 percent in the last 24 hours.
India’s December gold futures closed the Tuesday trade at Rs 1,30,160 per 10 grams of 24-carat purity, which is 0.15 percent up from the previous close.
Meanwhile, the rupee closed yesterday's session at 89.908 against the U.S. dollar, which is 0.02 percent up in the last 24 hours.
Interest rate traders now comprise 86.4 percent vote for the probability of a 350-375 target rate bps in the two-day U.S Federal Reserve meeting that commenced on December 9, as per FedWatch data that tracks the probabilities of changes to the Fed rate.
The US Federal Reserve's chairman, Jerome Powell, is scheduled to announce the policy meeting outcome at around 00:30 a.m IST.
The Indian Bullion and Jewellers Association (IBJA) announced the price of yellow at Rs 1,27,974 for 10 grams of 999 purity in their 18:30 rate session on December 9.
City-wise gold prices in India today
Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.
Why are gold prices rising?
"Markets remain focused on this week’s Federal Reserve policy, where a 0.25 percent rate cut is already priced in, but the statement, forward guidance, and economic outlook will drive fresh momentum.
“With Powell nearing the end of his term, expectations around the longer-term easing cycle continue to keep the broader outlook constructive for gold and silver. Gold is expected to trade in the Rs 1,28,000 to Rs 1,31,500 range ahead of the policy event," said Jateen Trivedi, VP Research Analyst (Commodity and Currency), LKP Securities.
Outlook: Will gold continue momentum this week?
Manav Modi, Commodities Analyst (Precious Metal), Motilal Oswal Financial Services, said that gold is trading slightly lower from the recent highs amidst a rise in the US bond Yields, as traders look 2026 beyond a near-certain rate cut at the Fed’s December meeting.
Benchmark US 10-year treasury yields rose to a 2-1/2-month peak, accelerating to the upside after a powerful earthquake hit Japan. As investors brace for the Fed's next policy announcement, Kevin Hassett, a leading candidate likely to take over the role of Fed chair, said it would be irresponsible to lay out a plan for rate cuts over the next six months.
Modi noted that, after the in-line inflation data last week, market participants are keenly watching the Fed policy meeting. The interest rate decision will be important to monitor in relation to Governor Powell's speech and economic forecasts.
If the forecasts and tone from the Fed chair build expectations for further rate cuts in 2026, that could push bullion further. However, if this meeting turns out like the last two – 'cautious cut' – it could keep bullions steady.
Central banks' buying remains supportive. People’s Bank of China added to its gold reserves for the 13th straight month; it now holds around 74.12moz of gold in reserves, said Modi.
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