Gold prices in India have shown resilience amid global uncertainties, with the yellow metal hovering above ₹1,30,000 per 10 grams for 24K gold in recent sessions. Domestic prices are influenced by a weakening Indian Rupee (breaching ₹90 against the USD), expectations of a US Federal Reserve rate cut, and steady central bank buying. However, analysts note potential short-term volatility due to mixed global cues, including fading hopes for aggressive Fed easing. Here's a roundup of the key developments from the past week:
Current Gold Prices (December 7, 2025)
Prices remained stable across major cities, with no significant changes from the previous day. Below is a snapshot for 24K, 22K, and 18K gold per gram (rates may vary slightly by jeweler due to local taxes and making charges):
Source: Aggregated from Goodreturns and Mathrubhumi data. For 10 grams: 24K ~ ₹1,30,150; 22K ~ ₹1,19,300.
Key News Highlights
Price Surge Ahead of Fed Meeting: Gold prices in India topped ₹1,30,000 per 10 grams on December 7, up slightly from ₹1,29,870 on December 2, driven by soft US employment data and anticipation of a 25-basis-point Fed rate cut. Analysts at MCX predict a potential test of ₹1,33,500 this week if the Fed adopts a dovish tone, though a stronger USD could cap gains.
Weekly Volatility: Prices dipped to ₹1,29,650 per 10 grams for 24K on December 5 (down 0.47% from the prior day) due to a stronger dollar index and Fed caution on further cuts in 2025. However, they rebounded by December 7, reflecting global spot gold at ~$4,200/oz and sustained demand from Indian households and investors hedging against inflation.
December Outlook Positive: Experts forecast a bullish month for gold, with potential gains of 2-5% despite volatility from US economic data. Key drivers include diversification by central banks (e.g., RBI's ongoing purchases), geopolitical risks, and the Rupee's depreciation. Silver has outperformed, up ~418% over the last decade vs. gold's 398%. HSBC notes central banks are unlikely to slow buying, motivated by long-term hedging against policy risks.
Investment Advice: Analysts recommend a "buy on dips" strategy for MCX gold futures, targeting ₹1,21,000-₹1,23,000 support levels. Retail investors should monitor US data releases this week. Over the past 10 years (2015-2025), gold has delivered ~398% returns in INR terms, outpacing Nifty50's 223% but trailing silver's 418%.
Broader Context
Global Ties: India's gold imports remain elevated, with prices ~15% higher than in Dubai due to duties. BRICS nations (including India) are exploring silver as a monetary asset amid USD debasement concerns, boosting sentiment.
Other Notes: A minor scam involving an Indian student in the US (seizing gold bars worth $385K) made headlines, but it's unrelated to market trends.
For real-time updates, check MCX or apps like Good returns. Prices can fluctuate; consult a financial advisor for personalized advice.
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