The spot price of gold, where the physical precious metal is bought and sold for immediate delivery, stood just above $4,3154 an ounce on December 17 (6:54 am IST). The price gained 0.24 percent in a day and 2.53 percent in a week.
The gold price in the domestic futures market on MCX, where trading involves standardized contracts to buy and sell the precious metal at a predetermined price, opened the Wednesday session at Rs 1,35,079 per 10 grams of 24-carat purity, and dipped to the lowest at Rs 1,33,373 before hovering at around Rs 1,34,476 as of 12:26 p.m (IST). The price is up 0.05% in the last 24 hours.
The precious metal hit an all-time high of Rs 1,35,496 as recorded on December 15.
Meanwhile, in the absence of RBI intervention, delays in the India-US trade deal, and continued FII outflows have weighed on the rupee, which stood at 90.924 against the U.S. dollar on Wednesday, representing a 1.26 percent gain over the past week.
Why are gold prices rising?
“Market focus has now shifted firmly to key US economic indicators due later this week, particularly the Non-Farm Payrolls and Core PCE Price Index, which are expected to drive the next directional move," said Rahul Gupta, Chief Business Officer, Ashika Stock Services.
The Augmont Bullion report, published on December 17, predicts the gold price to trade in the range of $4,300 (~Rs 1,33,000) to $4,380 (Rs 1,35,000) this week. So, buy on dips around support to book profits around resistance.
Outlook: Will gold continue its momentum this week?
Ross Maxwell, Global Strategy Operations Lead, VT Markets, said that after a 60% surge, gold may see mild corrections, but strong fundamentals keep it a long-term hedge.
"After such a strong year and an increase of 60%, gold prices are vulnerable to a correction, though the fundamental drivers haven’t changed. So, I would not expect an outright collapse. A combination of global uncertainty, geopolitical tensions, central bank buying, expectations of interest-rate cuts, and currency weakness has all created the environment for gold's strong performance," said Maxwell.
Profit taking by short-term traders, any delays in rate cuts by the Fed and other central banks, a stronger USD, or easing geopolitical risks can trigger short-term corrections. Corrections in gold are often shallow and time-based rather than deep price crashes, especially when structural drivers like persistent inflation risks, rising sovereign debt, and diversification away from fiat currencies remain intact.
"For investors, the strategy should be balanced rather than reactive. Those who entered at lower levels may consider partial profit-taking while maintaining a core allocation, as gold continues to serve as a hedge against volatility and macroeconomic shocks. New investors should consider using dollar cost averaging (DCA) strategies to buy on dips.
"Gold's portfolio presence should be aligned with an investor's risk appetite and long-term goals, rather than chasing momentum. Investors with a long-term horizon can view any meaningful correction as an opportunity to add gradually. Gold should continue to be treated as a strategic asset for hedging, diversification, and capital protection," said Maxwell.
Gold prices vary by purity. Check out below to see the prices of gold based on its purity.
Purity (Grams) Price (₹) 10 Grams of 24K Purity 1,33,860 10 Grams of 22K Purity 1,22,700 10 Grams of 18K Purity 1,00,390
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.
City 24K (per gram) 22K (per gram) 18K (per gram) Chennai 13,473 12,5350 10,300 Mumbai 13,386 12,270 10,039 Delhi 13,401 12,285 10,054 Kolkata 13,386 12,270 10,039 Bangalore 13,386 12,270 10,039 Hyderabad 13,386 12,270 10,039 Kerala 13,386 12,270 10,039 Pune 13,386 12,270 10,039 Vadodara 13,391 12,275 10,044 Ahmedabad 13,391 12,275 10,044
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