Gold prices rose on December 11, climbing above $4,215 an ounce in the spot market after the US Federal Reserve, as widely expected, cut the lending rates by 25-basis-point, the third reduction this year.
At home, the yellow metal was trading at Rs 1,30,575 for 10 grams in the futures market, where trading involves standardised contracts to buy and sell the precious metal at a predetermined price. The price is up 0.60% from its previous close at Rs 1,29,796.
Gold, which hit record highs in India during the festival season, has gained 0.35 percent in a week and 2.34 percent in a month.
Traders typically choose to buy or invest in assets like gold when interest rates are cut, as the value of cash stored in a bank or the return on a short-term bond falls, analysts say.
“A softer USD, combined with lower interest rates, supports gold and silver by reducing the opportunity cost of holding non-yielding assets. Investors tend to look toward safe-haven assets, strengthening demand for precious metals,” said Ross Maxwell, Global Strategy Operations Lead, VT Markets.
Check out the prices of 10 grams of pure gold for 24-carat, 22-carat, and 18-carat purity.
Gold Rates in India Today (₹)
| Type | Rate (₹) |
|---|---|
| 10 Grams of 24K Purity | 1,30,310 |
| 10 Grams of 22K Purity | 1,19,450 |
| 10 Grams of 22K Purity | 97,730 |
Gold rates across India’s major cities remain largely uniform, with marginal differences due to local taxes, jeweller margins and logistics costs.
Gold Rates in Top Indian Cities Today (₹)
| City | 24K (per gram) | 22K (per gram) | 18K (per gram) |
|---|---|---|---|
| Chennai | 13,124 | 12,030 | 10,030 |
| Mumbai | 13,031 | 11,945 | 9,773 |
| Delhi | 13,046 | 11,960 | 9,788 |
| Kolkata | 13,031 | 11,945 | 9,773 |
| Bangalore | 13,031 | 11,945 | 9,773 |
| Hyderabad | 13,031 | 11,945 | 9,773 |
| Kerala | 13,031 | 11,945 | 9,773 |
| Pune | 13,031 | 11,945 | 9,773 |
| Vadodara | 13,036 | 11,950 | 9,778 |
| Ahmedabad | 13,036 | 11,950 | 9,778 |
Why are gold prices rising?
"Gold has been rising, majorly driven by central banks buying, global ETF flows, trade war uncertainty, and geopolitical risks over the last few months," said Mangesh Chauhan, MD of Sky Gold & Diamonds. Central banks bought 53 tonnes of gold in October, 36 percent more than the previous month and the largest monthly net demand this year. "Total YTD reported buying through October is solidly positive at 254 tonnes, but slightly slower than previous years," Chauhan said.
Outlook: Will gold continue momentum this week?
According to Maxwell, the rate cut provides some relief to global financial markets, supporting risk assets through lower borrowing costs and improved liquidity conditions. However, uncertainty over the US growth potential and the limited room for manoeuvre the Fed has for further easing may hold back global investor sentiment. Emerging markets could benefit from a softer dollar but volatility is likely to remain as the global markets adjust to shifting US economic signals.
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