Gold price today: Spot prices hold strong at $4,516 per ounce fueled by increased geopolitical tension; check rates in your city

Gold price today

The spot price of gold continued its uptrend. The price of precious metal, which is bought and sold for immediate delivery, stood just above $4,516 an ounce on December 28 (8:40 am IST). That is a decline of 0.35 percent from its previous close and a gain of 1.6 percent in a week. The spot price surged to its peak performance at Rs $4,546 on December 26.

The domestic futures price of gold on MCX stood at Rs 1,38,209 per 10 grams of 24-Carat purity on Monday (9:02 am IST). The trading in futures involves standardised contracts to buy and sell the precious metal at a predetermined price. The price is up 0.21 percent from its previous close. The gold futures price peaked on MCX at Rs 1,38,300 as recorded on December 26.

Meanwhile, the rupee stood at 89.694 against the U.S. dollar on Monday, representing a 0.08 percent decline in a day and a gain of 0.10 percent in a week.

Why are gold prices rising?

The Augmont Bullion report, published on December 24, noted that gold prices have risen to $4,550 (up 72% year-on-year), setting new records, fueled by anticipation of further Fed easing and increased geopolitical tensions.

"Gold’s breakout above $4,500/oz confirms strong momentum, with near-term support around $4,200-$4,300, and institutional forecasts pointing toward $4,900-$5,000 by late 2026 amid safe-haven demand and macro uncertainties," said Justin Khoo, Senior Market Analyst - APAC, VT Market.

Gold prices vary by purity. Check out below to see the prices of gold based on its purity

Source: Goodreturns

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.

Source: Goodreturns

Outlook: Will gold continue its momentum this week?

The Augmont report further stated that gold broke its previous high of $4400, after two months of consolidation between $3,935 and $4,400, so this rally is expected to extend further towards $4,575 (Rs 1,40,000) and $50,00 (Rs 1,50,000) in a few weeks.

Here's a rundown on what's driving gold's momentum, according to the Augmont report:

• Although third-quarter GDP grew at a healthy 4.3 percent annualised pace, lower consumer confidence in December and unchanged manufacturing output in November have contributed to the assumption that monetary policy may be softened in the coming months.
• The war between Israel and Iran, as well as rising tensions between the United States and Venezuela, have boosted safe-haven flows into gold. Furthermore, US Q3 GDP data fails to strengthen the US Dollar despite increased bets on two Fed rate cuts in 2026, which supports the non-yielding bullion.
• Trump stated that the next Fed chair will be someone who believes in "significantly lower interest rates." He said that applicants who disagreed with his ideas would be excluded from consideration for the Fed's top job. Investors and politicians are likely to be concerned about the Federal Reserve's independence following these comments.