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Gold prices in India slipped once again on the morning of December 5, mirroring the weakness seen in international markets. Investors remain cautious ahead of the upcoming US Federal Reserve policy meeting, leading to muted sentiment across precious metals. Both gold and silver opened lower, extending the downtrend of the past few sessions.

According to early morning rate updates, 24-carat gold prices in the national capital dropped to ₹1,29,800 per 10 grams, while 22-carat gold was priced at ₹1,18,990 per 10 grams. The downward movement comes at a time when global traders are waiting for fresh policy cues from the Federal Open Market Committee (FOMC), scheduled to meet on December 9–10.

Global Market Pressure Pulls Gold Down

In the international market, gold slipped to $4,197.10 per ounce, reflecting concerns over the latest US economic data. Reports released earlier showed a decline in November payrolls—the weakest reading since 2023. The disappointing figures have strengthened expectations of a possible rate cut by the US Federal Reserve. When interest rates fall, returns on bonds weaken, prompting investors to shift toward safe-haven assets like gold. However, for now, the uncertainty around the Fed’s decision is keeping gold prices under pressure.

Gold Rates in Major Indian Cities

Gold prices across major cities also showed a softening trend. Here are the latest rates recorded on December 5:

Delhi

• 22-carat gold: ₹1,18,990 per 10 grams

• 24-carat gold: ₹1,29,800 per 10 grams

Mumbai

• 22-carat gold: ₹1,18,840 per 10 grams

• 24-carat gold: ₹1,29,650 per 10 grams

Chennai

• 22-carat gold: ₹1,18,840 per 10 grams

• 24-carat gold: ₹1,29,650 per 10 grams

Kolkata

• 22-carat gold: ₹1,18,840 per 10 grams

• 24-carat gold: ₹1,29,650 per 10 grams

Hyderabad

• 22-carat gold: ₹1,18,840 per 10 grams

• 24-carat gold: ₹1,29,650 per 10 grams

Pune & Bengaluru

In both cities:

• 22-carat gold: ₹1,18,840 per 10 grams

• 24-carat gold: ₹1,29,650 per 10 grams

Other Major Cities

• Ahmedabad: 22k – ₹1,18,890 | 24k – ₹1,29,700

• Bhopal: 22k – ₹1,18,890 | 24k – ₹1,29,700

• Lucknow: 22k – ₹1,18,990 | 24k – ₹1,29,800

• Chandigarh: 22k – ₹1,18,990 | 24k – ₹1,29,800

• Jaipur: 22k – ₹1,18,990 | 24k – ₹1,29,800

The price movement across regions remains consistent, with only minor variations based on local demand, transportation costs, and supply conditions.

What’s Driving the Decline?

The drop in gold prices is primarily linked to global economic cues. The weaker US payroll data has raised the likelihood of a policy rate cut by the Federal Reserve early next year. A rate cut typically boosts gold prices in the medium term, but the current hesitation among traders is due to uncertainty about the Fed’s timing and tone.

In the weeks ahead, analysts expect gold to find strong support if the Federal Reserve signals a dovish stance. Historically, lower US interest rates reduce the appeal of fixed-income securities and increase investment demand for gold.

Silver Prices Also Move Lower

Silver followed the same downward trend as gold on December 5. In domestic markets, silver dropped to ₹1,90,900 per kilogram, while in the global market, spot silver was trading at $57.34 per ounce.

Market experts note that silver prices often mirror gold but tend to exhibit higher volatility because of their dual role—both as a precious metal and as an industrial commodity.

Domestic and Global Factors Both Affect Prices

Fluctuations in gold and silver rates in India are influenced by a combination of global price trends, currency movements, import duties, and local demand patterns. With the wedding season ongoing, retail demand remains firm, but international pressure has outweighed domestic buying strength for now.

As the Federal Reserve meeting approaches, traders and investors are expected to keep a close watch on global trends, which will continue to guide bullion prices in the coming days.