Bangalore Gold Rate Weekly Update (Dec 16-22): Prices Drop by Over 1%
Gold prices in Bangalore had a tough week, experiencing three significant drops and ending with a total decline of 1.4% for both 24-carat and 22-carat gold rates. However, after a recent increase, prices have stabilized as of December 22, 2024. Currently, 24-carat gold is priced at Rs. 77,450 per 10 grams, while 22-carat gold is at Rs. 71,000 per 10 grams in Bangalore. The 18-carat gold rate stands at Rs. 58,090 per 10 grams. Similarly, silver prices in Bangalore are at Rs. 91,500 per kilogram after experiencing declines throughout the week.
When it comes to factors influencing gold rates in Bangalore, economic indicators, especially from the US, play a significant role. For example, lower-than-expected inflation data in the US can weaken the US dollar, making gold more attractive. It’s important to note that gold prices often move inversely to the US dollar, so a weaker dollar typically supports gold prices, while a stronger dollar can have the opposite effect. Additionally, higher US Treasury yields, above 4.50%, can make gold less appealing as an investment compared to assets like bonds. Economic indicators such as a decrease in US jobless claims can also impact gold prices.
Looking ahead, experts suggest that gold may face downward pressure due to a potentially more hawkish stance from the Federal Reserve, ongoing inflation concerns, and uncertainty surrounding tariffs. The performance of the Chinese economy in the upcoming year will also play a crucial role in influencing gold demand, as any economic recovery or slowdown in China can affect investor sentiment and precious metal demand.
In terms of recent price movements, spot gold closed Friday’s trading session with a notable gain of 1.2%, reaching USD 2,623.18 per ounce. Similarly, US gold futures saw a positive movement, settling 1.4% higher at USD 2,645.10 per ounce. Spot silver also experienced a strong surge, rising 1.8% to end the day at USD 29.54 per ounce. The market outlook for the upcoming week suggests that global economic factors, geopolitical tensions, and monetary policies could continue to influence gold and silver prices.
