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Gold prices displayed divergent trends in early trade on Wednesday, December 17, as currency movements and global macro cues influenced bullion markets. While gold prices turned volatile amid a stronger US dollar, silver surged sharply on strong demand.
On the Multi Commodity Exchange (MCX), gold February futures initially gained 0.55% to trade at Rs. 1,35,150 per 10 grams, just below its all-time high of Rs. 1,35,346 recorded in the previous session. However, gains decreased as the dollar strengthened, triggering mild profit booking.
Silver March futures surged 4%, hitting a record high of Rs. 2,05,665 per kg before cooling slightly.
Mirroring the international gold prices, Mumbai also saw an increase in prices. 24K gold rose to Rs. 13,451 from yesterday’s Rs. 13,386 per gram. The price for 10 grams of 24K gold has also increased to Rs. 1,34,510.00 from Rs. 1,33,860.00.
Similarly, 22K gold prices have also increased to Rs. 12,330.00 per gram from Rs. 12,270.00; the cost for 10 grams of 22K gold has jumped to Rs. 1,23,300.00 from Rs. 1,22,700.00.
In Delhi, gold prices also increased. 24K gold price per gram trades at Rs. 13,466.00 from the previous price of Rs. 13,401.00.
The price of 10 grams of 24K gold has also risen from Rs. 1,34,010.00 to Rs. 1,34,660.00.
In the international markets, gold prices also found support from the anticipation of the US Federal Reserve administering further monetary easing.
Recent US labour data showed a rise in the unemployment rate for November, strengthening bets that the Fed may resume interest rate cuts early next year.
Low-interest-rate conditions usually favor gold as the lower the yields, the smaller the opportunity cost of holding non-yielding assets.
The stronger US dollar limited the gains of gold. The dollar index slightly increased, putting pressure on the dollar-priced precious metals and causing short-term fluctuations.
Adding to the mixed sentiment, reports of a possible Russia-Ukraine peace agreement have reduced demand for gold.
The geopolitical situation is one factor that traders and investors are watching closely, as any developments could influence gold prices in the short term.
Also Read: Top Gold Stocks on the TSX in 2025: Best Performers
In international markets, gold is expected to find support near $4,300 per ounce, while resistance is seen closer to $4,355-$4,400. Silver remains supported near $62.60, with resistance around $64.20 and above.
On the MCX, gold has support around Rs. 1,33,600-Rs. 1,32,800, while resistance lies near Rs. 1,35,000-Rs. 1,35,500. For silver, key support is placed near Rs. 1,96,000, while resistance is seen around Rs. 1,99,000-Rs. 2,00,500.
