Gold Price Holds Steady Post Slip On New Year's Eve

Gold price today stood at Rs 76,480 according to India Bullion Association as of 6:40 a.m. The precious commodity saw a slight slip in prices but held steady ahead of the New Year.

" Gold is heading for one of its biggest annual gains this century, with a 27% advance that’s been fuelled by US monetary easing, sustained geopolitical risks, and a wave of purchases by central banks," according to Bloomberg. While bullion has lowered since Donald Trump’s victory in the US election, its gains in 2024 still outstrip most other commodities. The gold price rally had cooled off since early November, with the global prices had been on a decline, but held steady ahead of the rate cut, before dipping.



The immediate dip in demand is pushed by the reduction of uncertainty as the the reduced rates and the trajectory for lower cuts in the future brings clarity. Zooming out, the year 2024 has seen a steady upward climb in the long term despite the volatility in the short term. The lowest level prices have gone to in 2024 was Rs 61,590, according to the India Bullion Association.

While the highest prices of the year yet, was in October during the festive demand. The futures prices for Feb. 5, 2025 stood at Rs 76,266 per 10 grams, according to the Multi Commodity Exchange.

Investors tend to consider the yellow metal a safe-haven investment during geo-political uncertainties or economic crisis. The reduced rates call, a clearer signal of the Federal Reserve's stance and plans, also reduce the need for safe-play investments. Global gold rates stood at $2,607, according to the World Gold Council.

"Gold’s strong gains this year — which have seen the metal set a succession of records — may signal a possible shift in the market’s dynamics given they have come despite a stronger US dollar and rising real Treasury yields, both typically headwinds," according to Bloomberg. The silver price stood at Rs 87,620 as of 6:40 a.m.

, according to the India Bullion Association. The futures prices for Feb. 5, 2025 stood at Rs 87,575 according to the MCX.

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