Due to the weakening rupee and strength in the global market, gold and silver prices in India rose sharply today. In major cities, 24-carat gold surpassed ₹1.30 lakh, while silver also became more expensive, affecting both investors and buyers.
Gold-Silver Rate Today: As markets opened on the morning of December 4th in India, a sharp increase was observed in gold and silver prices. Customer purchasing activity was already high during the festive and wedding season, and now the sudden surge in prices has heightened market concerns. Strength in the international market and the weakening rupee have given a new direction to domestic market prices. Investors are linking this increase to global sentiment and the dollar index, while jewelry buyers are being impacted by this change.
Impact of Rupee Depreciation on Gold
The rupee is continuously weakening against the dollar, and this depreciation is directly affecting gold and silver prices. A weaker rupee increases import costs, as India imports a significant portion of its gold demand from abroad. This is why even a slight increase in global gold prices has a more pronounced effect on the domestic market. The same occurred today, with a b surge in gold prices observed as soon as the market opened this morning.
Sharp Rise in 24-Carat Gold Prices
Gold, which had been under pressure for the past few days, has once again gained momentum today. In Delhi, 24-carat gold reached ₹1,30,740 per 10 grams. In major cities like Mumbai, Chennai, and Kolkata, 24-carat gold is trading at ₹1,30,590. Gold also showed strength in the global market, with its spot price remaining around $4,207.67 per ounce. The rupee's record low has further accelerated this increase, making gold more expensive for domestic consumers.
Current Gold Rates in Major Cities of the Country
The rates for 22-carat and 24-carat gold in several major Indian cities were as follows. In Delhi and Lucknow, 22-carat gold was recorded at ₹1,19,860, and 24-carat gold at ₹1,30,740. In Mumbai, Chennai, and Kolkata, 22-carat gold remained at ₹1,19,710, and 24-carat gold at ₹1,30,590. In Ahmedabad, the price for 22-carat reached ₹1,19,090, and for 24-carat, it reached ₹1,29,910. All these prices depend on the rupee's movement, global gold prices, and international market sentiment, and changes are possible throughout the day.
Market Eyes Federal Reserve Meeting
The direction of the global market now depends on the upcoming meeting of the US Federal Reserve, scheduled for December 9–10. Markets worldwide anticipate that the Fed may signal a moderation in interest rates. If interest rates decrease, the attractiveness of bonds diminishes, and investors return to gold as a safe asset. This very possibility has already strengthened the gold market. If the Federal Reserve provides any indication, further increases in gold prices could be observed in the coming days.
Sharp Rise in Silver Prices Too
Like gold, silver also gained momentum as markets opened today. Silver prices reached ₹1,91,100 per kilogram. In the international market, silver is trading at approximately $58.47 per ounce. Experts believe that global demand, the dollar index, and the state of the rupee have a significant impact on silver prices. The surge in silver prices alongside gold indicates that demand for precious metals may increase further in the near future.
