Gold Prices In India Outlook On January 9; How 24K, 22K, and 18K Prices Perform On Thursday?

Gold prices in India are likely to be influenced by global trends as investors await for official jobs report which is scheduled on Friday. After two consecutive muted performances, gold prices picked up momentum on January 8th, with 24K of 100 grams surging by Rs 1,100 at least. The 10-gram gold is racing towards the Rs 79,000 mark. On the other hand, spot gold price was jittery on Wednesday due cautious approach of investors.

Gold Prices In India:

100 grams of gold in 24K was priced at Rs 7,22,500 on January 8, higher by Rs 1,100. Meanwhile, 24K gold prices surged by 110 to Rs 78,820 per 10 grams on January 8, while 22K and 18k gold prices stood at Rs 72,250 and Rs 59,120 per 10 grams which were up by Rs 100 and Rs 90. The cheapest price of gold in India is Rs 7,225 per gram for 22-karat gold, Rs 7,882 per gram for 24-karat gold (also called 999 gold), and Rs 5,912 per 1 gram for 18K.

Silver Prices In India:

The price of 1 kg of silver was unchanged at Rs 92,500, while 1 gram of silver was available at Rs 92.50.

MCX Gold Prices:

Bullion also turned bearish in the closing hour on MCX, despite hitting the Rs 78,000 mark on Wednesday. MCX gold prices with February 2025 expiry, touched an intraday high of Rs 78,089 per 10 grams before falling by Rs 21 to end at Rs 77,726 per 10 grams.

Spot Gold Prices:

As per Trading Economics, spot gold prices trimmed gains to trade around $2,655 per ounce on Wednesday, as investors reacted to the Federal Reserve's December meeting minutes. Officials emphasized a cautious approach, citing uncertainties surrounding President-elect Donald Trump's proposed tariff policies.

What Will Drive Gold On January 9?

According to Trading Economics data, Fed Chair Jerome Powell compared the situation to "driving on a foggy night," advocating for measured policy adjustments. The minutes suggest that future rate cuts will hinge on clear economic indicators, such as a notable rise in unemployment or a drop in inflation toward the 2% target. Earlier, gold reached nearly a four-week high following a weaker-than-expected private employment report for December, which fueled speculation that the Fed might slow rate cuts due to a potentially weaker economy, supporting gold prices.

The ADP National Employment report showed an increase of 122K jobs, falling short of the expected 140K. Still, the market remains focused on Friday's US non-farm payroll report.

The latest report of the World Gold Council stated that uncertainty in bond markets is likely to fuel interest in gold in January, however, technical signals pose a near-term headwind for gold.

Dr. Renisha Chainani, Head of Research at Augmont highlighted that in November 2024, the central bank increased its gold reserves by 53 tons, indicating continued strong purchases. The Reserve Bank of India resumed its 2024 purchasing spree, increasing 8 tons of its gold reserves in November. This brings YTD buying to 73 tonnes and total gold holdings to 876 tonnes, retaining its position as the second-highest buyer in 2024 after Poland. The People's Bank of China has also increased gold holdings by 5 tonnes, indicating rising demand as global economic worries linger.

Also, Chainani added, Trump's statements about reclaiming the Panama Canal and putting tariffs on neighbours bolstered the US Dollar and limited gold's upside. The silver price is rising as a result of uncertainty surrounding the Trump administration's tariff strategy.

Lastly, Chainani said, "The US nonfarm payrolls report is due on Friday. Softness in US statistics this week could open the door for gains if investors grow more enthusiastic about the Fed's delivery of interest rate decreases by 2025."