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In early trade on December 15th, the price of gold increased due to a weaker US dollar and lower Treasury yield, making gold appealing once again to some investors. At about 10 am (IST), February gold futures traded at Rs 1,34,777 per 10 grams (0.86% gain), and March silver futures traded at Rs 195,346.00 per kg (1.29% gain).
Gold prices saw large fluctuations on December 12th when February gold futures reached an all-time high of Rs 135,263.00 per 10 grams (over a 2% daily gain). Similarly, silver reached an all-time high of Rs 201,615.00 per kg, and ended the day at Rs 192,318.00, after being sold heavily during the trading day.
The rebound in prices on Monday was due to the decline in the value of the US Dollar Index (USD) about 0.1%, while the yield on a US Treasury bond dropped to approximately 4.18% (lower Fe-value) which reduced the total cost of holding (in this case, being an internal investor) gold and silver because they are non-productive financial assets (no cash flow).
As in the international market, Gold prices increased in Mumbai. 24K gold rose to Rs. 13,473 from yesterday’s Rs. 13,391 per gram. The cost for 10 grams of 24K gold has also increased to Rs. 1,34,730.00 from Rs. 1,33,910.00.
Similarly, 22K gold prices have also jumped to Rs. 12,350.00 per gram from Rs. 12,275.00; the cost for 10 grams of 22K gold has risen to Rs. 1,23,500.00 from Rs. 1,22,750.00.
In Delhi, gold prices also increased, mirroring Mumbai’s trajectory. 24K gold price per gram trades at Rs. 13,593.00 from the previous price of Rs. 13,495.00.
The price of 10 grams of 24K gold has also increased from Rs. 1,34,950.00 to Rs. 1,35,930.00.
The precious metals market’s stellar growth over the last several months was driven by speculation that the US Federal Reserve would further reduce interest rates following the FOMC’s recent decision to ease monetary policy.
Additionally, the purchasing activity of many international central banks and the increased investment in gold and silver through exchange-traded funds (ETFs) Were Major Contributors To The Price Increase. In Addition To This, The Continued Geopolitical Risk Remains A Positive Impetus For Investment Into Precious Metals.
Additionally, The Domestic Price Action Is A Reflection Of The Strong Trend In The Precious Metal Market, With Gold Price Increasing By Nearly 70% Year-To-Date And Silver Increasing By Over 120% To Become The Most Successful Asset Class Of 2025.
Analysts believe gold prices will remain elevated in the near term. On the MCX, gold support is placed around Rs. 1,32,200-Rs. 1,31,000, while immediate resistance is seen near Rs. 1,34,800-Rs. 1,35,500.
For silver, key support lies at Rs. 1,90,000-Rs. 1,87,700, with resistance at Rs. 1,95,500-Rs. 1,98,000.
In international markets, spot gold edged higher to around $4,313 per ounce, while US gold futures traded close to $4,345 per ounce. Silver prices remained steady after last week’s strong rally.
Also Read: Top Gold Stocks on the TSX in 2025: Best Performers
