Gold Prices Dip Sharply on MCX Amid Global Cues and BOJ Hike on 19 December 2025

The Indian gold market witnessed a noticeable downturn on Friday, December 19, 2025, as prices on the Multi Commodity Exchange (MCX) experienced a significant drop. Traders and jewelry shoppers saw MCX gold fall by nearly ₹1,000 per 10 grams, with overall prices reported to be down by 0.53% across major cities. This decline marks a second consecutive day of profit booking, driven primarily by evolving global economic signals.

Several key factors contributed to today's slump in the yellow metal. A major influence was the Bank of Japan's recent interest rate hike, which sent ripples through global markets and led to gold slipping on the MCX. Alongside this, a strengthening US dollar made dollar-denominated gold less attractive for international buyers, further pressuring prices. Weak global cues also played a role, prompting traders to book profits after what has been a period of elevated gold rates. While one report suggested gold was at "all-time highs" today, this likely reflects the broader context of historically high valuations, with the day's movement representing a sharp correction from those peaks. Prices were notably slashed in cities like Vijayawada, and specific rates for 18K, 22K, and 24K gold were closely tracked in Delhi, Mumbai, Chennai, Kolkata, and Bengaluru.

The current market dynamics present a mixed picture for Indian consumers. Despite the day's sharp fall, overall gold prices remain at levels that are impacting traditional jewelry demand, which is seen falling as consumers become more price-sensitive. Conversely, investment buying continues to show resilience, suggesting that some investors are viewing these dips as opportunities or are hedging against future uncertainties. Analysts are now closely monitoring the gold rate outlook for the remainder of December and into 2026, with predictions being a key discussion point for those wondering whether to buy or wait.

Despite today's significant drop, the broader trend for the week still appears positive, with gold poised for a weekly gain. This suggests that the current correction might be a temporary recalibration rather than a sustained downtrend. Investors and potential jewelry buyers are advised to keep a close watch on global economic developments, particularly central bank policies and currency movements, as these will continue to dictate gold's trajectory in the coming days and weeks.