Spot gold price stood at $4,201 an ounce on December 5, as of 6:36 am IST, which is a recovery of 0.50 percent from yesterday’s low at $4,180.
India’s December gold futures Friday opened the trade at Rs 1,29,862 per 10 grams of 24-carat purity, and continued to hover around Rs 1,30,750 as of 12:48 p.m., which is 0.52 percent up from previous close.
Meanwhile, the rupee stood at 90.129 against the US dollar at 12:50 p.m. IST, up 0.86 percent a week ago.
Interest rate traders now comprise 87 percent vote for the probability of a 350-375 target rate bps in the upcoming US Federal Reserve meeting in December, as per FedWatch data that tracks the probabilities of changes to the Fed rate.
The Indian Bullion and Jewellers Association (IBJA) announced the price of yellow at Rs 1,27,845 for 10 grams of 999 purity in their 18:30 p.m rate session on December 4.
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
"Traders are tempering expectations of early rate cuts, and therefore, sentiments remain subdued. The current level may see some selective buying, but overall momentum stays restricted. Unless major economic data sparks a shift, gold is likely to move in a narrow range, driven mostly by short-term market cues," said Aksha Kamboj, Vice President, India Bullion & Jewellers Association.
Augumont Bullion report published on December 5, stated that gold has started its upward journey again; the next target is $4,300 (Rs 1,32,000) and $4,345 (Rs 1,33,500) with strong support at $4,200 (Rs 1,29,000).
Outlook: Will gold continue momentum this week?
"For gold into 2026, I look upon the recent correction as a healthy consolidation after a very robust rally in 2025. The fundamental drivers are still there: central-bank purchases, geopolitical uncertainty, a softer U.S. dollar, and cautious global growth. The overarching trend, provided gold holds its 2025 support levels, is higher, albeit at a more moderate pace. Considering ongoing inflationary pressures and changing monetary policies, I feel that steady accumulation or buying on dips is more prudent than waiting for a substantial correction.
"The key risks to gold in 2026 are a stronger US dollar or higher real interest rates, which could reduce investor appetite. High US inflation or strong labour-market statistics could lead the Fed to delay rate reductions, placing downward pressure on prices. A decline in geopolitical tensions or an increase in the value of the Indian rupee could also reduce momentum. If central banks trim their gold purchases after significant buying in 2025, that structural support for gold will be weaker, and the price of gold may turn more vulnerable to global market fluctuations," said Ross Maxwell, Global Strategy Lead at VT Markets.
The Augmont Bullion added that gold and silver prices are consolidating as rising US Treasury yields counteract support from a weaker dollar, while investors await Friday's US inflation data for hints on the Federal Reserve's policy stance ahead of its December meeting.
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