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India’s gold surge: Gold prices in the country have been on an upward trend since December 14, 2023, with 10 grams of 24-carat gold becoming Rs 2,180 more expensive.
The price of 24-carat gold has consistently risen, except for a slight dip on December 16 and periods of stability on December 17, December 19, and December 21. In the current market, the cost of 10 grams of 24-carat gold is Rs 63,490, reflecting a gain of Rs 260. Similarly, 10 grams of 22-carat gold has seen a surge of Rs 2000 since December 14, reaching a price of Rs 58,200.
Gold glitters
The price of 100 grams of 24-carat gold has risen to Rs 6,34,900, up by Rs 2,600, while 100 grams of 22-carat gold now costs Rs 5,82,000 after a Rs 2,000 increase today. Experts attribute this rise to the expectation of a Federal Reserve interest rate decrease. Factors such as low US bond rates and a weak Dollar are providing additional support to gold prices. The CME Group’s FedWatch Tool predicts a higher likelihood of a Fed rate cut by March 2024, with a cumulative 150 basis points cut expected by the end of 2024.
Analysts suggest that if markets anticipate multiple rate cuts and the dollar and yields are lower, gold is likely to perform well. Traders are currently pricing in an 83 per cent chance of a US rate cut by March, according to the CME FedWatch tool. The opportunity cost of holding non-yielding bullion decreases with lower interest rates, contributing to the positive performance of gold.
Gold prices reached their highest level in almost 3 weeks | ShutterstockTime for gold?
According to a Reuters report, gold prices reached their highest level in almost three weeks, rising to $2,054.50 per ounce for spot gold and $2,067.40 for US gold futures. The precious metal is set for a 1.8 per cent weekly increase, its second consecutive rise. The current holiday season, characterised by thin trading volumes, presents an opportune time to buy gold, as prices are expected to continue rising in 2024.
City-wise gold price comparison
In Chennai, 10 grams of 22-carat gold costs Rs 58,750, while 10 grams of 24-carat gold is priced at Rs 64,090. In Mumbai, the prices are Rs 58,200 and Rs 63,490 for 10 grams of 22-carat and 24-carat gold, respectively.
Delhi sees rates of Rs 58,350 and Rs 63,640 for the same quantities of 22-carat and 24-carat gold. Meanwhile, in Kolkata, 10 grams of 22-carat gold is priced at Rs 58,200, and 10 grams of 24-carat gold costs Rs 63,490.
The current cost of 1 kilogram of silver in India stands at Rs 79,000, reflecting a decrease of Rs 500. Over the last three days, from December 20 to December 22, silver prices experienced an increase of Rs 2,000. Furthermore, since December 14, the value of silver has surged significantly, rising by Rs 5,800.
