National News
Gold prices in India see sharp correction from record highs
Gold prices in India have experienced a sharp correction from record highs set earlier this week, declining by Rs 1,200 per 10 grams and Rs 12,000 per 100 grams from their December 15 peak. The pullback comes after prices touched all-time highs, with 24-carat gold retreating from Rs 1,35,380 to Rs 1,34,180 per 10 grams. Similarly, 100 grams of 24-carat gold has dropped from Rs 13,53,800 to Rs 13,41,700. Despite the correction, gold remains up 3% for December overall.
Current pricing across different purities shows 22-carat gold at Rs 1,23,000 per 10 grams and 18-carat gold at Rs 1,00,630 per 10 grams. For larger purchases, 100 grams of 22-carat gold is priced at Rs 12,29,000, while 18-carat gold costs Rs 10,06,300 per 100 grams. The market saw particularly sharp declines on December 19, with prices dropping by up to Rs 660 per 10 grams.
Silver has outperformed gold significantly in December, surging over 11% during the month. Current silver rates stand at Rs 2,09,000 per kilogram, which represents a Rs 2,000 decline from the historic high of Rs 2,11,000 reached on December 18. For smaller quantities, 100 grams of silver is priced at Rs 20,900 and 10 grams at Rs 2,090.
On the MCX futures market, gold with February 2026 expiry closed at Rs 1,34,206 per 10 grams on December 19, registering a marginal gain of 0.01%. Silver futures with the same expiry date dropped 0.08% to close at Rs 2,08,699 per kilogram. Market analysts note that gold traded in a narrow range near $4,330 on Comex globally, while domestic prices faced pressure from rupee strength, which offset international bullion firmness.
Looking ahead to the Christmas week, analysts project gold will remain volatile within a range of Rs 1,31,500 to Rs 1,34,000, suggesting prices may consolidate rather than reach new record highs. Market experts attribute the current price stability to safe-haven demand and volatile global markets, with strong buyer confidence despite elevated levels. However, some consolidation around recent gains is expected.
Silver’s outlook remains positive after decisively breaking above the Rs 2 lakh mark, which demonstrates the strength of the current rally. While profit-taking may occur at these elevated levels, market sentiment continues to support prices. Analysts expect some volatility as markets adjust to the breakout, though the overall trajectory remains constructive. The holiday-shortened trading week coincides with wedding season, which typically drives higher demand for gold and silver jewelry across India.
National News
NPCI Defers Rollout Of UPI Merchant Discount Rate Until After Diwali
Given Typical Retail Margins Of 2%–6% On Bullion and Plain Gold Jewellery, Absorbing A 0.4% Fee—Or Up To ₹300 Per Large Transaction—Would Have Directly Eaten Into Festive Profitability. The Deferral Keeps Bottom Lines Protected Through Dhanteras and Diwali.
The National Payments Corporation of India’s (NPCI) UPI and Services Steering Committee has deferred the implementation of Merchant Discount Rates (MDR) on select person-to-merchant (P2M) UPI transactions until immediately after Diwali.
The move aims to protect consumer sentiment and keep operational costs steady for businesses during the peak festive shopping season. A specific implementation date will be announced separately.
Key Highlights
- Festive Relief for Retail: The deferment ensures merchants face no additional payment processing costs during peak festive demand, helping avoid disruptions to consumer spending.
- The Approved MDR Structure:
- Applies only to eligible P2M transactions above Rs 2,000 at a rate of 0.4%.
- Capped at Rs 300 for high-value transactions of Rs 75,000 and above.
- Everyday low-value payments and small merchants remain fully exempt, preserving zero-cost digital transactions for general consumers.
- Timeline Adjustment: Originally notified on September 15 for an October 15 rollout, the framework will now take effect post-Diwali, giving banks, payment aggregators, and merchants additional runway to align their systems and communicate terms clearly.
Jewellery purchase values routinely exceed the Rs 2,000 threshold and frequently touch or surpass the Rs 75,000 cap. Given typical retail margins of 2%–6% on bullion and plain gold jewellery, absorbing a 0.4% fee—or up to Rs 300 per large transaction—would have directly eaten into festive profitability. The deferral keeps bottom lines protected through Dhanteras and Diwali.
Introducing transaction fees just as footfall surges would have forced retailers to decide whether to absorb the cost or pass it on to buyers (via checkout surcharges or selective discounts). Avoiding this choice prevents awkward billing counter negotiations and cart abandonment during rush hours.
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