Gold Prices In India Outlook On March 21: Will 24K Gold Price Hit Rs 91,000 As Israel-Gaza War Escalates?

Gold prices in India continue to be at record-high levels. 24K gold price crosses Rs 90,000 per 10 grams mark, while MCX gold crosses the Rs 89,700 mark for the first time. The yellow metal is expected to rise ahead due to the escalation of the Israel-Gaza war and the Fed's latest statement on persistent inflation that raised concerns about a potential stagflationary environment. However, the Fed has downplayed the recession risk, even when Trump warned about its possibility due to a tariffs war.

Gold Prices In India:

24K gold price is at Rs 90,670 per 10 grams, just Rs 330 away from hitting Rs 91,000 mark. While 22K and 18K gold price stood at Rs 83,110 and Rs 68,001 per 10 grams mark.

Currently, the price of gold is Rs 9,067 per gram for 24-karat gold, Rs 8,311 for 22-karat gold and Rs 6,800 per gram for 18-karat gold (also called 999 gold).

Silver Prices In India:

1Kg silver price stood at Rs 1,05,100, while 1 gram price is at Rs 105.20. In cities like Chennai, Hyderabad, and Kerala, 1Kg silver is at Rs 1,14,200.

MCX Gold, Silver Prices:

On March 20th, MCX gold with April 2025 expiry, touched a new all-time high of Rs 89,796 per 10 grams before correcting to end at Rs 88,730 per 10 grams, up by Rs 128.

Also, MCX silver price stood at Rs 99,420 per 1kg, marginally up. During the trading session, silver had touched an intraday high of Rs 1,00,767 per 1kg.

Spot Gold Price:

Spot Gold hovered around $3,050 per ounce on Thursday, a fresh record, supported by rising US rate cut expectations and strong safe-haven demand. The Federal Reserve noted increased economic uncertainty but still expects to cut rates by 50 bps this year, matching its December projection and boosting non-yielding gold, as per Trading Economics.

Also, Trading Economics added that tensions in the Middle East escalated as Israel launched "targeted ground activities" in Gaza, retaking part of a key area after an airstrike ended a two-month ceasefire with Hamas. The US also kept striking Houthi targets in Yemen after Red Sea attacks, with Trump vowing to hold Iran accountable for future incidents. At the same time, worries over global trade disputes persisted as new duties are set to take effect in April, following the US's 25% tariff on steel and aluminum enacted in February.

Gold Prices Outlook:

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold prices experienced a minor correction in Comex from the $3,050 level as profit booking emerged after a sharp rally from $2,850 to $3,050 in just two weeks. While the Fed's policy stance provided support, markets appear to have absorbed the positive cues, and improving risk sentiment could lead to further corrections in bullion, with a potential decline of $30-$50 in the coming days. In MCX, gold is expected to find support near ₹87,500, while ₹89,000 will act as a key resistance level."

While Suresh Darak, Founder, Bondbazaar said, "Following the two-day FOMC meeting, Federal Reserve Chair Jerome Powell aimed to alleviate concerns about an impending economic slowdown while maintaining that inflationary pressures from trade policies would be temporary. However, Powell's statement "we really can't know" if the inflationary effect will indeed be temporary highlights the uncertainty surrounding the central bank's inflation outlook."

Darak added, the possibility of further rate cuts in 2025 remains uncertain, with the 10-year US Treasury yield remaining range-bound after the meeting. This uncertainty is likely to persist until more data on inflation and growth becomes available.

On gold price, Darak said, "The US Federal Reserve's decision to keep interest rates steady has been perceived positively by investors, with some experts predicting that gold prices could rise further due to the potential for future rate cuts.''

Furthermore, Tata Mutual Fund's note said, "gold prices gained slightly as lower bond yields increased the appeal of non-yielding assets like gold."

The Mutual Fund's note lastly said, "If US inflation persists, gold could rally further, especially if the April 2 trade policy decision introduces tariff-driven inflation risks."