Gold is that one asset which never goes out of fashion. Trends change, markets crash, interest rates dance up and down but gold? It calmly sits there, sipping chai, watching everything unfold. Let’s break down the full gold story point by point.
Why Is Gold Always the Investor’s Favorite Choice?
Short Answer: Because gold doesn’t panic when markets do.
Gold has been trusted for thousands of years long before stock markets, mutual funds, or “Buy the Dip” tweets existed.
Here’s why investors love gold:
- Safe Haven Asset: When markets fall, gold usually rises.
- No Default Risk: Companies can fail, governments can change rules but gold stays gold.
- Universal Value: From India to the US, gold speaks one global language.
- Portfolio Balancer: It reduces risk when equities turn volatile.
In simple terms: Gold is that calm friend who doesn’t overreact during chaos.
How Does Gold Fight Against Inflation?
Short Answer: Gold keeps your purchasing power alive.
Inflation means your money buys less over time. What cost ₹100 today might cost ₹130 tomorrow. But gold has a habit of rising when inflation rises.
Why gold works as an inflation hedge:
- Inflation up → Currency value down → Gold price up
- Gold preserves long-term wealth
- Central banks themselves buy gold during inflationary phases
That’s why grandparents trusted gold and honestly, they were right more often than not.
What Is Today’s Gold Price in India? (21/12/2025)
Here are today’s gold prices in India:
- 24K Gold: ₹13,418 per gram
- 22K Gold: ₹12,300 per gram
- 18K Gold: ₹10,064 per gram
Prices may vary slightly depending on city, taxes, and jeweller margins.
Does Christmas Affect Gold Prices?
Short Answer: Yes just not the way Santa affects kids.
Christmas impacts gold prices mainly because:
- Low Trading Volumes: Many global traders take holidays
- Profit Booking: Traders lock gains before the year end
- Short-Term Volatility: Less participation = sharper moves
So, if gold dips near Christmas, it’s often due to thin liquidity, not because gold suddenly lost its charm.
Think of it as markets going into “holiday mode”.
What Is MCX? (Simple Explanation)
MCX stands for Multi Commodity Exchange of India.
It’s where commodities like:
- Gold
- Silver
- Crude Oil
- Natural Gas
are traded in futures contracts.
Why MCX matters for gold
- MCX gold prices reflect global gold + INR movement
- Traders, hedgers, and investors use it for price discovery
- It’s the benchmark for India’s commodity market
In short: MCX is Dalal Street for commodities.
Why Did Gold Prices Dip by Around ₹1,000 Recently?
What happened?
Gold prices fell by nearly ₹1,000 per 10 grams on MCX, slipping from around ₹1,35,199 to ₹1,34,206.
Key reasons behind the fall:
1) INR vs US Dollar Battle
- Indian Rupee strengthened against the US Dollar
- Strong INR = cheaper imports = pressure on gold prices
2) Japan’s Interest Rate Hike
- Bank of Japan raised interest rates
- Higher Japanese rates weakened the US Dollar
- A softer dollar led traders to book profits in gold
3) Profit Booking Before Christmas
- Gold had recently touched record highs
- Traders booked profits ahead of the holiday week
Important takeaway
Despite the dip, experts still believe the overall gold trend remains bullish. Many analysts see such corrections as buy on dips opportunities, not panic signals.
Gold didn’t fall because it’s weak it fell because traders got greedy (and then cautious).
Final Thoughts: Should Investors Worry?
Not really.
- Gold remains strong fundamentally
- Inflation, geopolitical risks, and central bank demand support prices
- Short-term dips are part of long-term investing
If history teaches us anything, it’s this: Gold rewards patience, not panic.
