Gold prices hit a two-week high of Rs 78,800 per ten grams after managing to cross this milestone in the last trading session. Inflation, which is central to any economy for trade, in this particular situation, and which the United States would have to deal with, is expected to have a significant impact affecting the price of gold as well as the volume of the dollar.
As of 10:09 am, February gold futures were trading at Rs 78,840 per 10 grams on the MCX, a rise of Rs 502 or 0.64% from the previous session’s close. In contrast, March silver futures fell slightly by Rs 4 to trade at Rs 95,521 per kg.
Spot gold also climbed 0.2% to $2,698.47 per ounce as of 2:53 GMT, marking its highest level since November 25.
Focus on US inflation and fed policy
Market watchers are watching the US CPI closely, expected to rise 0.3 per cent in November. The data is important because it could influence the Federal Reserve’s policy direction for 2025.
According to a Reuters poll, 90 per cent of economists expect the Fed to cut interest rates by 25 basis points on Dec. 18, and another break is expected at the end of January. Low interest rates generally support gold prices because they reduce the opportunity cost of holding non-returnable assets such as gold.
Geopolitical tensions add to Gold’s appeal
Geopolitics also fueled gold’s rally. Israeli forces have launched major raids on Syrian weapons stockpiles and naval bases, while South Korean police have raided the presidential office in a martial law investigation. Such developments tend to make gold a safe haven for investors.
Gold rates in major Indian cities
Delhi
- 22-carat gold: Rs 58,464/8 grams
- 24-carat gold: Rs 62,320/8 grams
Mumbai
- 22-carat gold: Rs 57,232/8 grams
- 24-carat gold: Rs 61,024/8 grams
Chennai
- 22-carat gold: Rs 56,856/8 grams
- 24-carat gold: Rs 60,600/8 grams
Hyderabad
- 22-carat gold: Rs 56,944/8 grams
- 24-carat gold: Rs 60,744/8 grams
Market outlook
With the US inflation data and the Fed’s rate decision on the horizon, analysts expect gold prices to remain volatile. The precious metal continues to thrive during economic uncertainty and geopolitical instability, securing its status as a preferred investment in turbulent times.
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