Gold prices witnessed significant volatility earlier in the day on December 23, 2024, as the markets reacted to a strengthening US dollar and rising bond yields. This fluctuation came on the back of recent macroeconomic data highlighting the robustness of the US economy. Despite these developments, a decline in US inflation helped ease concerns about the slow pace of the Federal Reserve’s rate cuts expected next year, providing a cushion to bullion prices.
By mid-afternoon trading, the MCX Gold February 5 expiry contract was up by 0.14%, or ₹110, to trade at ₹76,522 per 10 grams at 2:06 PM. This recovery was attributed to easing inflation data, which mitigated some of the bearish factors stemming from the strong dollar and higher bond yields.
Gold prices had also gained in the earlier trading session on December 20, 2024, following some softening in the dollar index and bond yields. This trend reflects the dynamic interplay between global macroeconomic factors and investor sentiment, which continue to shape the precious metal’s performance.
Gold has emerged as a top-performing asset in 2024, surpassing benchmark Indian stock indices such as the Sensex and the Nifty 50. While the Nifty 50 has gained approximately 9% this year as of December 23, 2024, MCX gold rates have surged around 21% in the same period.
Several factors have contributed to this impressive rally in gold prices:
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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