Gold Prices In India Outlook On December 5; What Will Drive 24K, 22K, 18K Prices On Thursday?

Gold prices in India on Thursday, December 5, 2024, will react to the US Federal Reserve's latest speech and uncertainties in France and South Korea amidst geopolitical tensions. Additionally, investors will await the services PMI to NFP later in the week. Currently, gold prices in 24K of 10 grams are at Rs 77,770, while 1kg silver has erased its Rs 91,000 mark. So far this week, prices of gold have been volatile.

Gold Prices In India:

Currently, 10 grams of gold in 24K is available at Rs 77,770, while 10 grams of 22K and 18K gold is priced at Rs 71,290 and Rs 58,330. In cities like Delhi, the gold price in 24K is higher to Rs 77,920 for 10 grams, while in cities like Vadodara and Ahmedabad, the price is at Rs 77,820.

In other cities like Mumbai, Kolkata, Chennai, Bangalore, Kerala, Hyderabad, and Pune, 24K of 10 grams of gold is at Rs 77,770.

Silver Prices In India:

The price of silver in India is currently at Rs 90.90 per gram and at Rs 90,900 per kilogram. In cities like Chennai, Hyderabad and Kerala, 1Kg silver is at Rs 99,400.

MCX Gold, Silver Prices:

MCX gold with February 2025 expiry stood at Rs 77,124 per 10 grams after market hours of December 4th. The bullion was marginally up.

A similar trend was seen in silver prices. Silver with a March 2025 expiry surged to end at Rs 93,344 per 1kg.

Spot Gold Prices:

Gold held above $2,640 per ounce on Thursday, remaining within a tight trading range as investors continued to assess the Federal Reserve's monetary policy outlook ahead of a key jobs report.

Gold Prices Outlook On December 5:

According to Trading Economics data, on Wednesday, Fed Chair Jerome Powell stated that he expects officials to proceed cautiously as they continue to lower rates while reaffirming the resilience of the US economy. However, this view was challenged by recent data that revealed that the services sector slowed more than expected in November. The data also raised the likelihood of a 25 bps rate cut in December, which benefits gold by reducing the opportunity cost of holding non-interest-bearing assets. Meanwhile, the metal continued to gain support from its safe-haven status amid global geopolitical unrest, including political turmoil in South Korea and France, the Russo-Ukrainian war, and Israel's threat of war with Lebanon if its truce with Hezbollah collapses.

Meanwhile, Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services said that gold prices traded steady to positive, supported by safe-haven demand amid a rise in the geo-political risk premium and some chart-based buying after key resistance was breached. However, gains look capped by a stronger greenback and some caution was seen ahead of the Fed chairman's speech and key economic data from the services PMI to NFP later in the week."

"On chart momentum looks consolidative with resistance at 77250/ 77450, while on the downside support holds at 76650," Mer added.

At a New York Times event, Powell said that the US economy is in good shape, and he does not see any reason currently that will stop the momentum of that. Powell pointed out that in the labor market, the downside risks appear to be less, while growth is stronger than predicted, and inflation has come in a little higher. That being said, Powell added that FOMC can afford to be slightly more cautious as they try to find neutral.

In another development, the France's current ruling government is overthrown of its seat after receiving no-confidence vote, while parliament of South Korea has introduced a motion seeking the impeachment of President Yoon Suk Yoel after martial law crisis.