Gold prices see marginal rise for second consecutive week in December; check all details

Gold prices in India on Friday, December 13, ended at nearly ₹78,000 per 10 gm 24K gold and around ₹71,500 per 10 gm 22K gold, rising marginally for the second consecutive week in December. The yellow metal declined in the global markets, after experiencing highs in the previous sessions.

The precious metal has been seeing lows and highs throughout the two weeks of the last month of the year, signalling market volatility and global uncertainty.

Gold prices increase when investors look at gold with a safe haven angle, hoping to find security in a time of market fluctuations and associate a risk premium with the metal.

The US Fed meeting is approaching and all focus will be on US Fed Chair Jerome Powell's press conference after the meet next week. A Reuters report suggested that investors are almost certain that the Fed will cut interest rates by 25 basis points in the December 17-18 meeting. Rate cuts by the Fed can lead to an increase in gold prices. The mixed US economic data outlook led to a cut in spot gold prices.

The all-time highs in gold prices during the Diwali season and the dip that followed in November gave the yellow metal an interesting trajectory in the current fiscal year. While there was a 30% increase in the prices as compared to Diwali last year, the metal’s appeal softened with the Israel-Hezbollah ceasefire.

The metal took an upward trend once again starting the end of November with wedding season in the country and other factors including geopolitical escalations.