The domestic bullion markets witnessed specific price movements for gold and silver on Monday, December 30, 2024. Prices were influenced by a combination of international trends and local market dynamics, providing a mixed picture for investors and buyers across major Indian cities.
Detailed Price Breakdown for Precious Metals
On the Multi Commodity Exchange (MCX), the futures contracts for gold and silver showed the following trends. The February 2025 gold futures contract was trading at Rs 62,380 per 10 grams, reflecting the market's opening sentiment. Meanwhile, the March 2025 silver futures contract was quoted at Rs 73,850 per kilogram on the same platform.
In the international arena, which significantly impacts domestic prices, spot gold was trading at $2,326.70 per ounce. The key factor influencing this was a strengthening US Dollar Index (DXY), which was hovering around 103.70. A stronger dollar typically makes gold more expensive for holders of other currencies, potentially dampening demand.
City-Wise Gold Rates for Buyers
The retail prices for physical gold varied across India's major metropolitan hubs, with purity being a key determinant. Here is a snapshot of the rates for 24-carat and 22-carat gold in several cities:
- Chennai: 24-carat gold was priced at Rs 6,450 per gram, while 22-carat gold was at Rs 5,910 per gram.
- Mumbai: The financial capital saw 24-carat gold at Rs 6,430 per gram and 22-carat at Rs 5,895 per gram.
- Delhi: In the national capital, 24-carat gold was available for Rs 6,440 per gram, with 22-carat gold costing Rs 5,905 per gram.
- Kolkata: Prices here were slightly lower, with 24-carat at Rs 6,420 per gram and 22-carat at Rs 5,885 per gram.
These rates include making charges and Goods and Services Tax (GST), which are standard components of the final price paid by the consumer.
Market Analysis and Influencing Factors
The trading session was characterized by specific pressures on precious metals. Analysts pointed to the firm US dollar and elevated US Treasury bond yields as primary headwinds for gold prices on the global front. These factors often reduce the appeal of non-yielding assets like gold.
Furthermore, market participants were adopting a cautious stance. Many were awaiting key US economic data releases scheduled for the coming week, including jobless claims and manufacturing PMI figures. This data is closely watched for clues on the Federal Reserve's future monetary policy path, which has a direct correlation with gold's attractiveness.
The domestic physical gold market also showed a slight premium over official domestic prices, indicative of steady local demand amidst the global price adjustments.
Outlook for Investors and Consumers
For individuals looking to invest or purchase jewellery, the day presented a scenario of moderate prices with underlying volatility. The interplay between a robust dollar and anticipatory global markets created a complex environment. Experts suggest that the direction for gold and silver in the near term will heavily depend on the upcoming US economic indicators and any resultant shifts in expectations for interest rate cuts.
In summary, December 30 offered a snapshot of a gold market balancing between local demand and global macroeconomic pressures. While retail rates in cities like Chennai and Mumbai held firm, the futures market and international spot prices indicated a cautious tone ahead of significant economic data, guiding investor sentiment for the final days of the year.
