Gold prices rose marginally on Monday (December 23) in global markets as investors covered short positions. The metal added 0.2%, trading at $2,626.47 per ounce in thin trade, following the US Federal Reserve’s cautious approach to interest rate cuts for 2025.
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Meanwhile, US gold futures slipped slightly by 0.1% to $2,641.50 per ounce.
In India, gold prices dipped.
In Delhi, 24K gold fell by ₹10 to ₹77,590 per 10 grams, while 22K gold was trading at ₹71,140 per 10 grams.
Key drivers influencing gold prices
Fed’s stance on interest rates
The Federal Reserve’s recent 25-basis-point rate cut and fewer anticipated cuts in 2025 have put downward pressure on gold. However, short-covering and technical support have offered a boost.
Softening dollar and teasury yields
A weaker US dollar and easing Treasury yields have added to gold’s appeal as an alternative investment.
Global inflation trends
US data showing a slowdown in inflation has supported precious metals.
November’s PCE index rose just 0.1%, down from October’s 0.2%.
Geopolitical tensions
Escalating Russia-Ukraine tensions could support demand for safe-haven assets like gold.
Gold outlook
Ajay Kedia, Director at Kedia Commodities, noted that holiday trading modes and short-covering are driving current movements.
He added, “Technical support is also playing a role in stabilizing prices.”
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted critical support levels: “In Indian terms, gold has support at ₹76,220-75,040 per 10 grams, while resistance is at ₹76,670-76,840 per 10 grams. Global support levels lie at $2,600-$2,581 per ounce.”
Investment perspective
Gold remains a strategic investment amid economic uncertainty.
Experts advise watching geopolitical developments and inflation data closely.
Investors should consider key resistance and support levels before making decisions.
–With agencies inputs
Content retrieved from: https://www.cnbctv18.com/personal-finance/gold-prices-india-rates-rise-fall-outlook-investment-demand-factors-19528324.htm.
