Gold Prices In India Outlook On January 17th; What Will Drive 24K, 22K, 18K Prices On Friday?

Gold prices in India are likely to be influenced by a softer rate cut from US Fed in its upcoming policy after US inflation data came in line with market estimates. MCX gold price is seen to have resistance around Rs 79,400 per 10 grams, while the outlook is positive on Friday, January 17. After the key inflation data, yellow metal in India rallied on January 16th by at least Rs 5,500, tracking international prices.

Gold Prices In India:

24K gold prices surged by Rs 5,500 in 100 grams to Rs 8,06,200, while 10 grams price jumped by Rs 550 to Rs 80,620 per 10 grams. Further, 22K gold prices rose by Rs 5,000 and Rs 500 in 100 grams and 10 grams to Rs 7,39,000 and Rs 73,900 respectively.

Meanwhile, 18K gold price also climbed by Rs 4,100 in 100 grams to Rs 6,04,700 and surged by Rs 410 to Rs 60,470 per 10 grams.

Silver Prices In India:

The price of silver has also seen consistent surge in January month. On the 16th, the price climbed by Rs 2,000 in 1Kg to Rs 95,500. Further, the cheapest silver is currently at Rs 95.50. In cities like Chennai, Kerala and Hyderabad, silver is at Rs 1,03,000 per 1kg.

MCX Gold, Silver Prices:

MCX gold price stood at Rs 79,193 per 10 grams, while MCX silver price was at Rs 92,744 per 1kg.

Spot Gold Prices:

As per Trading Economics data, spot gold rose to the $2,715 per ounce mark on Thursday, extending gains from the prior session to test its highest in two months amid growing expectations that the Fed will lower interest rates this year. Retail sales rose less than expected in December while initial unemployment claims rebounded sharply in January.

Further, the data said that the results aligned with the backdrop that favours lower interest rates by the Fed to prevent a sharper economic slowdown this year, magnifying the impact of yesterday's slower core CPI print on gold prices. Such developments lift bullion and Ttreasuriesacross all durations as lower monetary rrestrictionsllimitthe opportunity cost of holding non-yielding assets.

What To Expect From Gold Prices On January 17?

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the rally followed the release of U.S. CPI data, which came in line with expectations at 2.9% (MoM) for December. However, a lower-than-expected Core CPI (MoM) for December, at 0.2% against 0.3%, provided additional support to gold prices. The softer inflation reading has strengthened expectations of continued rate cuts by the Federal Reserve, adding momentum to gold's rally.

He added, "Volatility is expected to remain high due to ongoing macroeconomic developments. In the domestic market, gold holds a positive outlook above ₹77,000, with resistance levels seen at ₹79,250-₹79,400."