Gold price today: Up 0.24% to hover just above $4,314 an ounce; check 24K, 22K, 18K rates in your city

Source: GoodreturnsWhy are gold prices rising? “Gold prices remained volatile as early trade witnessed profit booking, with Comex gold slipping towards the $4,275 level and staying under pressure. However, domestic prices found support from a weak rupee, limiting losses in MCX compared with a sharper decline in Comex. Market focus has now shifted firmly to key US economic indicators due later this week, particularly the Non-Farm Payrolls and Core PCE Price Index, which are expected to drive the next directional move. In the near term, gold is likely to trade in a volatile range of Rs 1,31,000 to Rs 1,35,000,” said Rahul Gupta, Chief Business Officer, Ashika Stock Services. The Augmont Bullion report, published on December 16, noted that gold prices fell as investors awaited the US nonfarm payrolls report for October and November, which would provide additional information on the Federal Reserve’s policy stance. If labour market data confirms the idea that employment remains a weak point, precious metals may benefit since it enhances the case for quicker rate cuts. The report further expects gold to trade in the range of $4,290 (Rs 1,32,000) to $4,400 (Rs 1,36,000) this week. So, buy on dips around support. Outlook: Will gold continue its momentum this week? Ross Maxwell, Global Strategy Operations Lead, VT Markets, said that after a 60% surge, gold may see mild corrections, but strong fundamentals keep it a long-term hedge. “After such a strong year and an increase of 60%, gold prices are vulnerable to a correction, though the fundamental drivers haven’t changed. So, I would not expect an outright collapse. A combination of global uncertainty, geopolitical tensions, central bank buying, expectations of interest-rate cuts, and currency weakness has all created the environment for gold’s strong performance,” said Maxwell. Profit taking by short-term traders, any delays in rate cuts by the Fed and other central banks, a stronger USD, or easing geopolitical risks can trigger short-term corrections. Corrections in gold are often shallow and time-based rather than deep price crashes, especially when structural drivers like persistent inflation risks, rising sovereign debt, and diversification away from fiat currencies remain intact. “For investors, the strategy should be balanced rather than reactive. Those who entered at lower levels may consider partial profit-taking while maintaining a core allocation, as gold continues to serve as a hedge against volatility and macroeconomic shocks. New investors should consider using dollar cost averaging (DCA) strategies to buy on dips. “Gold’s portfolio presence should be aligned with an investor’s risk appetite and long-term goals, rather than chasing momentum. Investors with a long-term horizon can view any meaningful correction as an opportunity to add gradually. Gold should continue to be treated as a strategic asset for hedging, diversification, and capital protection,” said Maxwell. City-wise gold prices in India Today Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.