Fed Policy Impact On Gold Prices In India: Rate Cut Or Pause, What Are Key Triggers For 24K, 22K, 18K Gold?

Gold Prices In India On January 29, 2025: One of the major events in the gold market will be the monetary policy outcomes from the US Federal Reserve on Wednesday. When the two-days policy meeting started on January 28th, gold prices in India witnessed a volatile trend with 24K gold prices falling sharply by Rs 3,200 in 100 grams and down by Rs 320 in 10 grams. MCX gold prices extended their record performance to hit a new all-time high of Rs 80,928 per 10 grams before correcting in the closing bell. A status quo is expected from US Fed's chair Jerome Powell owing to uncertainties.

Gold Prices In India:

Yesterday, gold prices were down by Rs 3,200 in 100 grams to Rs 8,19,300 in 24K and 10 grams of the same carat dipped by Rs 320 to Rs 81,930. Meanwhile, the 22K gold price was at Rs 75,100 per 10 grams.

In the early hours of January 29, gold prices in Indian retail stores were down to 7,5,090 per 10 grams for 22-karat gold, at Rs 81,920 per 10 grams for 24-karat gold (also called 999 gold). While the 18K gold price slipped to Rs 61,440 per 10 grams.

MCX Gold, Silver Prices:

After hitting a new all-time high of Rs 80,928 per 10 grams, MCX gold with February 2025 expiry, ended at Rs 80,900 per 10 grams higher by Rs 740 or 0.92% on January 28.

MCX silver price ended flat at Rs 91,060 per 1kg, after hitting an intraday high of Rs 91,175 per 1kg on Tuesday.

Spot Gold Price:

As per Trading Economics data, gold held its recent decline at $2,740 per ounce on Tuesday as traders awaited the Federal Reserve's two-day policy meeting, which begins later today. With the central bank expected to keep interest rates steady, the focus will be on Fed Chair Jerome Powell's speech and how the central bank will respond to President Donald Trump's call for interest rate reductions. Gold's appeal as an inflation hedge could be reduced if Trump's policies, which are seen as inflationary, lead the Fed to keep rates elevated.

What Will Impact Gold And Silver On January 29, 2025?

Dr. Renisha Chainani, Head of Research at Augmont explained that gold remains stable as investors watch the U.S. Federal Reserve's policy meeting to see if the central bank's stance was affected by President Donald Trump's proposals.

Chainani added that on Wednesday, U.S. policymakers are likely to keep interest rates unchanged. However, Trump may make it more difficult by stating last week that he wants the Fed to reduce borrowing costs.

"Trump further declared today that he will soon impose tariffs on manufacturers of computer chips and pharmaceuticals. In addition, he plans to impose duties on copper and aluminium and will consider imposing taxes on steel and other industries," Chainani said.

Also, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the upcoming U.S. Federal Reserve policy decision and India's Union Budget are critical events, keeping participants cautious and focused on potential developments.

Key Triggers For Gold And Silver Prices:

Chainani said, gold has given a breakout from its symmetrical triangle, and prices have sustained above $2750 (~Rs 79100), so we can see further momentum towards $2800 (~Rs 80500) this week.

For silver, Chainani added, the prices have given a bullish breakout from its symmetrical triangle pattern by trading above $30.5 (~Rs 92000). If prices sustain above this level, we could see more gains up to $31.3 (~Rs 94000).

Trivedi said, these events are likely to drive volatility in the gold market, with near-term support seen around Rs 79,000 and resistance at Rs 80,600 in domestic.