Gold Rates in Bangalore Surge: 24-Carat Hits Rs. 8.28 Lakh per 100 Grams

Gold Prices Soar in Bangalore

Gold prices in Bangalore witnessed a massive jump today, breaking a two-day losing streak. The 24-carat gold rate surged by Rs. 9,200 per 100 grams, reaching Rs. 8,28,500. Similarly, 22-carat gold rose by Rs. 8,500 per 100 grams, retailing at Rs. 7,59,500. This sharp increase is attributed to a weaker US dollar and anticipation surrounding the Federal Reserve's policy meeting outcomes.

Key Price Updates

• 24-carat gold: Rs. 8,28,500 per 100 grams (up Rs. 9,200).
• 22-carat gold: Rs. 7,59,500 per 100 grams (up Rs. 8,500).
• 18-carat gold: Rs. 62,140 per 10 grams (up Rs. 690).

Silver Prices Hold Steady

While gold prices surged, silver rates in Bangalore remained stable at Rs. 96,500 per kilogram. The price of 100 grams of silver is currently Rs. 9,650. Analysts expect silver to follow gold’s trajectory in the coming days, depending on global market trends.

Factors Driving the Rally

The recent spike in gold prices is driven by:

• A decline in the US dollar index, making gold more attractive to investors.
• Anticipation of the Federal Reserve’s policy decisions, which could influence future rate cuts.
• Increased demand ahead of the Union Budget 2025 announcement.

Expert Analysis

According to Nirmal Bang Securities, the Federal Reserve is expected to pause rate cuts in January, maintaining the federal funds rate target at 4.25%-4.50%. However, the central bank may adopt a cautious stance, emphasizing uncertainties in the economic outlook. This could lead to further volatility in gold and silver prices.

Gold Prices in Major Indian Cities

While Bangalore saw a significant rise, gold prices in other major cities remained stable or declined slightly:

• Delhi: 24-carat at Rs. 83,000, 22-carat at Rs. 76,110.
• Mumbai: 24-carat at Rs. 82,850, 22-carat at Rs. 75,950.
• Chennai: 24-carat at Rs. 82,850, 22-carat at Rs. 75,950.
• Kolkata: 24-carat at Rs. 82,850, 22-carat at Rs. 75,950.

Commodity Market Trends

On the Multi Commodity Exchange (MCX):

• Gold futures (expiring February 5, 2025) rose 0.07% to Rs. 80,349.
• Silver futures (expiring March 5, 2025) dipped 0.05% to Rs. 91,003.

Globally, spot gold remained steady at $2,762.49 per ounce, while spot silver held at $30.38 per ounce.

Market Outlook

With the Federal Reserve’s policy meeting outcomes and the Union Budget 2025 on the horizon, gold prices are expected to remain volatile. Investors should monitor:

• Federal Reserve’s stance on interest rates.
• Global economic indicators and currency trends.
• Domestic demand during the wedding and festival season.

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Categories: Federal Reserve impact on gold, gold rates in Bangalore, silver prices