Gold prices is India is likely to be on a volatile note on Thursday, January 2nd, 2025, as investors await Donald Trump's take over of White House on January 20, which is the biggest key event of this month. The start of the new year 2025 has been broadly positive, however, fewer rate cuts trajectory have created a pressure on the performance of gold. In the previous session, gold prices in India surged as much as Rs 4,400.
Gold Prices In India:
The price of gold in India is currently at Rs 7,151 per gram for 22-karat gold and Rs 7,801 per gram for 24-karat gold (also called 999 gold). The cheapest 18K is at Rs 5,851 per 1 gram. In the early hours of Thursday, gold prices surged by Rs 1 to Rs 100 across carats. However, the cost of 10 grams of gold is Rs 78,010 for 24K, Rs 71,510 per 10 grams for 22K, and Rs 58,510 for 18K.
Gold prices in India on January 1st of 2025 stood at Rs 78,000 per 10 grams in 24K, while at Rs 71,150 per 10 grams in 22K. The gold price was at Rs 58,500 per 10 grams in 18k. The performance comes after gold prices dipped by 0.6% in overall December month.
In 2024, gold prices in Indian retail stores jumped by 21%, outperforming benchmarks like Sensex and Nifty. Gold also outperformed its counterparts in commodities such as silver, crude oil, and copper prices which jumped by over 17%, 2.5% and 10% in 2024.
Silver Prices In India:
On the other hand, silver prices marginally dipped to Rs 100 in the early session of Thursday. 1kg silver is below the Rs 91,000 mark to Rs 90,400. However, silver prices continue to be expensive in cities like Chennai, Kerala, and Hyderabad, reaching Rs 97,900 per 1kg.
MCX Gold, Silver Prices:
MCX gold with February 2025 expiry is flat at Rs 76,893 per 10 grams, while MCX silver with March 2025 expiry is also subdued at Rs 87,550 per 1kg.
Spot Gold Prices:
As per Trading Economics, gold climbed above $2,600 per ounce on Tuesday, marking its strongest annual performance since 2010 with a 26% gain for 2024. The surge has been driven by US monetary easing, ongoing geopolitical tensions, and record central bank purchases.
Gold Prices Outlook On January 2:
Trading Economics data stated that despite a slight dip after Donald Trump's election victory in November, gold's yearly gains outpaced most other commodities, including a mixed year for base metals and steep declines in iron ore and lithium. Looking ahead to 2025, investors are weighing the impact of U.S. monetary policy uncertainty, potential challenges under Trump's presidency, and China's push for economic recovery. Notably, gold's rise came despite a stronger U.S. dollar and higher Treasury yields, which are usually barriers to its growth.
Furthermore, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, gold prices remained positive on the first trading day of the year, supported by a flat dollar and an overall bullish trend. While the U.S. Federal Reserve's decision to project fewer rate cuts in 2025 has exerted some downward pressure on gold, the broader uncertainty surrounding global trade, especially with Donald Trump set to take office on January 20, 2025, is expected to lend strength to gold on dips.
On the technical front, immediate support is seen at ₹76,400 in MCX, while resistance lies at ₹77,250, he added.
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