What is the story about?
Gold prices in India stayed elevated on Wednesday (December 17), reflecting the impact of a weaker rupee and ongoing global uncertainty. According to market data, 24-carat gold was priced at ₹13,451 per gram, while 22-carat gold traded at ₹12,330 per gram.
Prices of 18-carat gold stood at ₹10,088 per gram.
Domestic bullion prices continued to draw support from currency depreciation, even as international markets remained volatile.
Gold traded in a narrow range globally, with gains capped by easing geopolitical tensions, while weaker US employment data and a softer dollar index offered support.
Industry participants flagged the effect of currency movements on the gems and jewellery sector.
Colin Shah, Managing Director of Kama Jewelry, said the sharp depreciation of the rupee in recent years has increased the landed cost of gold, raised working capital needs, and pressured margins for manufacturers.
“The current challenge for the industry lies in improving efficiency, maintaining disciplined hedging practices, and focusing on value-added designs, as currency depreciation now appears structural,” Shah said, adding that exporters may benefit from rupee weakness, while domestic manufacturers face higher input costs.
From an investment perspective, analysts remain cautious after gold’s strong run over the past year.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, said prices could witness short-term corrections driven by profit-taking, changes in rate-cut expectations, or shifts in geopolitical risk, though the broader fundamentals remain intact.
“Gold corrections are usually shallow rather than deep, supported by central bank buying, persistent inflation risks, and diversification away from fiat currencies,” Maxwell said, advising investors to maintain a balanced allocation and avoid chasing momentum.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said both gold and silver have benefited from their status as safe-haven assets this year. He noted that while both metals have delivered strong returns, silver has significantly outperformed due to its expanding industrial applications.
Market participants are now tracking upcoming global economic data and central bank signals for further direction in bullion prices.
Prices of 18-carat gold stood at ₹10,088 per gram.
Domestic bullion prices continued to draw support from currency depreciation, even as international markets remained volatile.
Gold traded in a narrow range globally, with gains capped by easing geopolitical tensions, while weaker US employment data and a softer dollar index offered support.
Industry participants flagged the effect of currency movements on the gems and jewellery sector.
Colin Shah, Managing Director of Kama Jewelry, said the sharp depreciation of the rupee in recent years has increased the landed cost of gold, raised working capital needs, and pressured margins for manufacturers.
“The current challenge for the industry lies in improving efficiency, maintaining disciplined hedging practices, and focusing on value-added designs, as currency depreciation now appears structural,” Shah said, adding that exporters may benefit from rupee weakness, while domestic manufacturers face higher input costs.
From an investment perspective, analysts remain cautious after gold’s strong run over the past year.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, said prices could witness short-term corrections driven by profit-taking, changes in rate-cut expectations, or shifts in geopolitical risk, though the broader fundamentals remain intact.
“Gold corrections are usually shallow rather than deep, supported by central bank buying, persistent inflation risks, and diversification away from fiat currencies,” Maxwell said, advising investors to maintain a balanced allocation and avoid chasing momentum.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said both gold and silver have benefited from their status as safe-haven assets this year. He noted that while both metals have delivered strong returns, silver has significantly outperformed due to its expanding industrial applications.
Market participants are now tracking upcoming global economic data and central bank signals for further direction in bullion prices.
