Gold Prices Outlook For December 2024: Book Profits Or Buy 24K, 22K, 18K Gold After 22% Gains In 11 Months?

Gold Prices In India: The gold prices in India rose sharply on Tuesday, December 3, 2024, despite volatility seen in international golds as investors await major US jobs data and speeches of Federal Reserve officials later. The latest surge in gold prices in India comes after a sharp decline of Rs 650 in 24K of 10 grams and a drop of Rs 6,500 in 100 grams of gold in the previous session. The performance also comes ahead of RBI's 3-day monetary policy meeting. RBI has kept interest rates unchanged since the start of FY24, and lowering rates could be a key support for yellow metal in India.

Notably, owing to geopolitical uncertainties, global risks and policy easing, have lifted gold prices in India and globally to record double-digit gains. In November month, despite Donald Trump's victory that pushed the dollar to 106 levels, the gold price ended the month near the Rs 78,000 level in 24K of 10 grams. From January 1 to November 30th 2024, both 22K and 24K gold prices have surged by approximately 22% each.

At the start of January 2024, 22K of 100 grams of gold price was at Rs 58,550, and has risen by 21.52% compared to the price of Rs 71,150 recorded on November 30, 2024. Similarly, 24K of 10 grams of gold surged by 22.12% by the end of November 30 when the price was at Rs 78,000 as against the gold price of Rs 63,870 at the start of the year.

Should You Buy Or Book Profits In Gold In December 2024?

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions said, amid worries about a trade war and geopolitical uncertainties, the price of gold has receovered in the last week of November. In retaliation to Ukraine launching Western weapons against its territory, Russian President Vladimir Putin stated Russia may deploy its new hypersonic missile to hit Ukrainian decision-making centres.

Additionally, he explained that the recent drop in US Treasury bond yields and the Dollar Index on expectations that the FFD would reduce borrowing costs once more in December also provides more support for the yellow metal. Gold is affected by Trump's tariff threats, but a shift in tone toward Canada and Mexico gives some relief.

As Gold prices have given around 30% returns this years, Kothari said, "we are likely to witness a bout of profit-booking by hedgefunds and ETFs in December, which might pressureize the prices. But amid geopolitical worries, prices will stay supported above $2500 (~Rs 73000). The higher side resistance is $2720 (~Rs 78000). So dips should be used as a long-term buying opportunity for the target of $3000 (~Rs 85000) in 2025."

Gold Latest Prices:

On December 3, gold prices in India surged by Rs 4,300 in 100 grams of 24K to Rs 7,77,800, while 10 grams gold price is up by Rs 430 to Rs 77,780. Further, 10 grams of gold in 22K and 18K jumped by Rs 400 and Rs 330 to Rs 71,300 and Rs 58,340 respectively.

MCX gold prices are marginally to Rs 76,730 per 10 grams at the time of writing on Tuesday. The bullion touched an intraday high of Rs 76,862 per 10 grams.

While spot gold price held around $2,640 an ounce level. According to Trading Economics, on Monday, Fed Governor Christopher Waller said he is inclined to support another rate cut later this month, while Fed Bank of New York President John Williams suggested a gradual shift toward a more neutral policy stance. This prompted investors to significantly increase expectations for another 25bps rate cut at the Fed's Dec. 17-18 meeting, with markets currently pricing in a 75% chance of such a move. This would reduce the opportunity cost of holding non-interest-bearing gold, boosting its appeal. Moreover, bullion prices remained supported by geopolitical tensions in the Middle East, particularly the ongoing clashes between Israel and Hezbollah despite a ceasefire agreement.