On Thursday, December 19, gold prices in India dropped sharply after the US Federal Reserve's decision to cut its benchmark interest rate by 25 basis points to 4.25%-4.50% on December 18. This move, alongside a strengthening US dollar and rising Treasury yields, significantly impacted the price of gold and silver in international markets. The Fed's rate cut and the expectation that fewer rate cuts will occur in 2025 contributed to the sharp decline. Investors are now eyeing upcoming US GDP and inflation data, which could further affect the prices of precious metals.
In India, the current price of gold stands at Rs 7,713 per gram for 24 carat gold and Rs 7,070 per gram for 22 carat gold. The price of 22K gold for 100 grams dropped by Rs 6,500, falling from Rs 7,13,500 on Wednesday to Rs 7,07,000 today. Meanwhile, the cost of 10 grams of 22K gold decreased by Rs 650, from Rs 71,350 to Rs 70,700.
The price of 24K gold also saw a significant reduction. The cost of 100 grams of 24K gold fell by Rs 7,100, from Rs 7,78,400 on Wednesday to Rs 7,71,300 today. Similarly, the price of 10 grams of 24K gold dropped by Rs 710, from Rs 77,840 to Rs 77,130.
In the 18K category, the price of 10 grams of gold decreased by Rs 530, from Rs 58,380 on Wednesday to Rs 57,850 on Thursday. The price of 100 grams of 18K gold also saw a significant drop of Rs 5,300, falling from Rs 5,83,800 to Rs 5,78,500.
These price movements reflect the ongoing volatility in global markets, and Indian gold prices are expected to remain sensitive to international cues in the coming days, especially with the release of crucial economic data from the US.
