Gold prices in India are expected to continue their upward momentum amidst the bearish market trend ahead. On Monday, when a broad-based selloff toppled Sensex by over 1,000 points and Nifty by 50 to below 23,100, gold prices in India witnessed a huge surge with 24K prices skyrocketing by Rs 4,300 in a single day in the case of 100 grams of gold. MCX gold also crossed the 78,500 mark with the rupee weakening to a lifetime low. With uncertainty in global trends, gold is likely to be in demand.
Gold Prices In India:
24K gold prices surged by Rs 43 to Rs 4,300 on January 13, during the occasion of Lohri which is celebrated in many regions of the country. 100 grams of gold is at Rs 8,00,700, while 10 grams of gold crossed the Rs 80,000 mark to hit Rs 80,070.
22K gold prices zoomed by Rs 40 to Rs 4,000 across grams. 100 grams of gold stood at Rs 7,34,000 and that of 10 grams gold price was at Rs 73,400.
Meanwhile, 18K gold prices advanced by Rs 33 to Rs 3,300 across grams on Monday. The gold rate stood at Rs 6,00,600 for 100 grams in 18K and at Rs 60,060 per 10 grams.
Silver Prices In India:
Silver prices in India also advanced with 1Kg price at Rs 94,600 up by Rs 100. In cities like Chennai, Kerala and Hyderabad, silver prices stood at Rs 1,02,100 per 1kg.
MCX Gold, Silver Prices:
After surging to hit an intraday high of Rs 78,766 per 10 grams, the MCX gold price with February 2025 expiry, ended at Rs 78,151 per 10 grams which was marginally lower.
MCX silver price with March 2025 expiry, however, plummeted by Rs 2,039 to end at Rs 90,467 per 1kg. Silver touched an intraday high of Rs 92,667 per 1kg on Monday.
Spot Gold Prices:
As per Trading Economics, gold prices declined to trade around $2,660 per ounce on Monday, following a robust U.S. jobs report that boosted the dollar to a two-year high and solidified expectations that the Federal Reserve will proceed cautiously with interest rate cuts this year. The stronger dollar, which rose to its highest level since November 2022, made gold more expensive for overseas buyers, contributing to the decline. The decline was also partially attributed to the drop in some profit-taking after a strong week for gold.
What Will Drive Gold Prices On January 14?
Trading Economics data stated that ongoing policy uncertainties, including those related to President-elect Donald Trump's tariff hike plans, have increased inflation concerns, potentially enhancing gold's attractiveness as an inflation hedge. Investors are now looking ahead to U.S. inflation data, weekly jobless claims, and retail sales for further insights into the Fed's policy direction. Higher interest rates tend to make non-yielding assets like gold less attractive.
Further, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the rise in crude prices came on the back of fresh sanctions imposed on Russia by US President Joe Biden, escalating geopolitical tensions. This rupee depreciation supported gold prices in the domestic market, amplifying the impact of global cues.
He further said, "Gold faces resistance at ₹79,000, while immediate support lies at ₹77,750. Positive sentiment persists amid ongoing uncertainty in global markets, keeping gold in focus for safe-haven demand."
January 14th, Tuesday is a public and bank holiday in many states of India due to the celebration of Makar Sankranti, and the demand for gold is expected to be high during festive seasons.
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