Bangalore Gold Rates Drop: 24K/100 Gold Down Rs. 13,100 On Nov 26, Silver Rs. 2,000/kg Cheaper

Gold prices in Bangalore have experienced another drop this week, influenced by a stronger US dollar and rising bond yields. Over the past two days, the price of 22-carat gold in Bangalore has decreased by Rs. 2,200 per 10 grams. Last week's rally in gold prices had deterred some buyers, but the recent decline comes just in time for the wedding season, when the demand for gold is extremely high in India. This drop in prices is expected to rekindle interest among both buyers and investors, potentially boosting activity in the bullion market.

On 26th November 2024, the 999 gold, or the 24-carat gold rate in Bangalore, stood at Rs. 77,240 per 10 grams after a decline of Rs. 1,310. Whereas the 916 gold, or 22-carat gold, prices slipped by Rs. 1200 to retail at Rs. 70,800 per 10 grams. Similarly, the 18-carat gold prices also fell by Rs. 980 to cost Rs. 57,930.

The prices for 100 grams of 24-carat yellow metal are now Rs. 7,72,400 after falling Rs. 13,100, and 22-carat gold also dropped by Rs. 12,000 to stand at Rs. 7,08,000 per 100 grams.

Indian Bullion Market Faces Huge Decline

Gold prices in Bangalore are now aligning with national trends, as demand has softened following last week's price surge. The high prices have dampened the yellow metal's appeal, with gold losing some of its luster. The final two months of the year generally observe a strong volatility in the gold market as the demand majorly fluctuates due to the wedding season in India.

A major shift is also seen as more people turning to digital gold as a convenient and hassle-free option for gifting, further impacting physical gold purchases. However, this temporary dip in gold prices in India is expected to revive demand, which will potentially lead to price increases once again.

Global Gold Market Trends

On the global stage, gold prices are also under pressure due to a strengthening US Dollar Index, which has rebounded after a recent dip. Major factors contributing to this decline in gold prices include expectations of a less dovish stance from the Federal Reserve, a rise in US Treasury bond yields, and renewed interest in the US dollar. Market analysts and investors are now awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes, which could provide further direction for gold prices.

Gold rates in other major cities in India:

Cities	24 carat	22 carat
Delhi	₹ 77,390	₹ 70,950
Mumbai	₹ 77,240	₹ 70,800
Bangalore	₹ 77,240	₹ 70,800
Kolkata	₹ 77,240	₹ 70,800

Silver Rates in Bangalore Today

1 kilogram of silver in Bangalore dropped by Rs. 2,000 to cost Rs. 89,500. Similarly, the price for 100 grams of silver experienced a significant dip of Rs. 200 to reach Rs. 8,950.

Gold and silver futures on MCX

On the Multi Commodity Exchange (MCX), the gold futures for December 5th delivery are reporting losses of 0.17%, at Rs. 75,182 per 10 grams. On the contrary, silver futures for the December 5th expiry are reading in green with a 0.30% rise in prices, which are currently at Rs. 87,961.

Spot Gold and Silver Rates on November 26th

As of 02:59 GMT, spot gold prices remained steady at USD 2,625.48 per ounce after briefly touching their lowest level since November 18 earlier in the session, according to the latest reports from Reuters. U.S. gold futures showed a modest increase of 0.3%, settling at USD 2,625.80 per ounce. Meanwhile, spot silver held flat at $30.29 per ounce.

Reuters further reported that the stability in gold prices on Tuesday follows a sharp 3% decline in the previous trading session. This recent steadiness is attributed to heightened safe-haven demand, spurred by geopolitical and economic uncertainties. A key factor driving this demand was President-elect Donald Trump's announcement of plans to impose tariffs on all imports from Canada, Mexico, and China, a move that has unsettled markets. Despite recent fluctuations, the yellow metal remains a focal point for traders seeking security in volatile markets.