Gold Prices In India Outlook On Monday: How 22K, 24K, 18K Gold Will React On March 17?

Gold Prices In India is likely to follow international prices with focus on key macroeconomic data this week. Te market will be impacted by key macroeconomic data releases. Focus will be on US Fed Interest Rate Decision, India WPI Inflation, US Core Retail Sales (MoM) (Feb), US Initial Jobless Claims, US Existing Home Sales (Feb), UK BoE Interest Rate Decision (Mar) and UK Unemployment Rate (Jan). Last week, gold prices touched new all-time high, with COMEX hitting $3,000 mark for the first time.

Gold Prices In India:

Currently, the 22K gold price is at Rs 82,190 per 10 grams, while the 24K gold price is at Rs 89,660 per 10 grams, and 18K gold is at Rs 67,250 per 10 grams. The price of gold in India is also Rs 8,966 per gram for 24-karat gold, Rs 8,219 per gram for 22-karat gold and Rs 6,725 per gram for 18-karat gold (also called 999 gold).

Silver Prices In India:

Meanwhile, silver price stood at Rs 1,02,900 per 1kg, and at Rs 102.90 per 1 gram. Gold prices in cities like Chennai, Hyderabad, and Kerala were at Rs 1,11,900 per 1kg, more expensive than other metro cities.

MCX Gold, Silver Prices:

MCX gold futures, with April 2025 expiry, stood at Rs 87,963 per 10 grams, down marginally after hitting a fresh record of Rs 88,310 per 10 grams on March 13.

MCX silver futures, with May 2025 expiry, closed at Rs 1,00,761 per 1 kg, which was marginally up. Last week, on March 13, it touched a new all-time of Rs 1,01,999 per 1kg.

Spot Gold Price:

After hitting a new historic high of $3004.81 last week on March 14, spot gold traded at $2988.2 an ounce, up 0.2%.

What Will Impact Gold Prices Ahead?

Talking about last week's performance, Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services said, that gold prices edged higher as uncertainty over tariffs persisted, driving safe-haven demand, while a cooler-than-expected U.S. inflation print also supported bullion by strengthening expectations of rate cuts. Data showed that the U.S. CPI increased less than expected last month reported at 2.8% against the previous month's 3%.

Going ahead, Modi added, the backdrop of aggressive tariffs on imports that are expected to raise the cost of most goods in the months ahead is keeping the overall inflation expectations higher in the market. President Trump early this month triggered a trade war, increasing tariffs on goods from China to 20% and imposing a new 25% duty on Canadian and Mexican imports, before dialling back and providing a one-month exemption for some goods that meet the rules of origin under the U.S.-Mexico-Canada Agreement on trade. Trump also reversed course on a pledge to double tariffs on steel and aluminium from Canada to 50%, hours after announcing the higher tariffs.

Furthermore, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities highlighted that gold posted posted weekly gains, rising 1.30% in Comex and 1% in MCX, supported by dollar weakness below 103.75 and softer-than-expected CPI data, which reinforced expectations of interest rate cuts in both the US and India.

Trivedi added, "the positive momentum in gold remains intact, but tariff discussions will keep volatility elevated. Any resolution on tariffs could trigger profit booking in gold. The expected price range for the coming sessions is between ₹84,500 and ₹87,500."

This week, FOMC's 2-day meeting is scheduled from March 18, with outcome announcement on March 19. In the previous policy, FOMC kept its key fund rates unchanged owing to uncertainty and elevated inflation.

As per Trading Economics, a majority of Fed policymakers acknowledged that the high level of uncertainty warranted a cautious approach when considering further adjustments to monetary policy, minutes from the January 2025 FOMC meeting showed. Many participants suggested that the Committee could maintain the policy rate at a restrictive level if the economy remained robust and inflation stayed elevated. Conversely, several noted that policy could be eased if labor market conditions weakened, economic activity slowed, or inflation returned to 2% more quickly than expected. Many policymakers stressed the need for additional evidence of sustained disinflation. Participants also highlighted upside risks to inflation, citing potential shifts in trade and immigration policies, geopolitical disruptions to supply chains, and stronger-than-anticipated household spending. The Fed kept the fed funds rate steady at the 4.25%-4.5% range in January, pausing its rate-cutting cycle after three consecutive reductions in 2024.