Gold Prices In Big Cities Surge On January 1st: What Is Driving 24K, 22K, 18K Prices & Should You BUY?

Gold prices in India started the new year 2025 with bumper performance as 24K, 22K and 18K yellow metal prices surged by up to Rs 4,400 on Wednesday, January 1, 2024. In the last few days of December 2024, gold prices were broadly volatile and ended the month with a downside of nearly 0.6%. International gold prices also surged by 24%, making it the strongest annual performance in over a decade. Let's find out what is driving gold prices and should you buy?

Gold Prices In India:

24K gold prices surged by Rs 4,400 in 100 grams to Rs 7,80,000, while 10 grams of the same is up by Rs 440 to Rs 78,000. Further, 22K gold prices in 100 grams and 10 grams rose by Rs 4,000 and Rs 400 to Rs 7,15,000 and Rs 71,500. Additionally, 18K gold prices in 100 grams soared by Rs 3,200 to Rs 5,85,000 and up by Rs 320 in 10 grams to Rs 58,500.

Gold Prices In Major Cities:

Gold Prices In Chennai: The price of gold in Chennai on Wednesday is at Rs 7,150 per gram for 22-karat gold and Rs 7,800 per gram for 24-karat gold (also called 999 gold). The cheapest gold price in 18K is at Rs 5,905 per 1 gram. The price of 10 grams of gold in Chennai is at Rs 78,000 in 24K, at Rs 71,500 in 22k, and at Rs 59,050 in 18k.

Gold Prices In Mumbai: The price of gold in Mumbai is currently at Rs 7,150 per gram for 22-karat gold and Rs 7,800 per gram for 24-karat gold (also called 999 gold). The cheapest gold price is at Rs 5,850 per 1 gram of 18K. The price of 10 grams is at Rs 71,500 in 22K, at Rs 78,000 in 24K and at Rs 58,500 in 18k.

These gold prices in Mumbai are also the same in cities like Kolkata, Pune, Kerala, Bangalore, and Hyderabad.

Gold Prices In Delhi: The price of gold in Delhi on Wednesday stood at Rs 7,165 per gram for 22-karat gold and at Rs 7,815 per gram for 24-karat gold (also called 999 gold). The cheapest gold price is at Rs 5,862 per 1 gram in 18K. The prices of 10 grams gold is currently at Rs 71,650 in 22K, at Rs 78,150 in 24K, and at Rs 58,620 in 18K.

Silver Prices In India:

Unlike gold, prices of silver were unchanged on the first day of New Year 2025. The price of silver in India on January 1 is at Rs 90.50 per gram and at Rs 90,500 per kilogram. In cities like Chennai, Kerala and Hyderabad, silver prices are expensive at Rs 98,000 per 1 gram.

MCX Gold, Silver Prices:

MCX gold price with February 2025 expiry, is trading at Rs 76,833 per 10 grams, up by Rs 85 or 0.11% at MCX. The price was near its intraday high of Rs 76,899 per 10 grams.

Meanwhile, MCX silver price with March 2025 expiry, traded at Rs 87,378 per 1kg, higher by Rs 145 or 0.17%. The price was near its intraday high of Rs 87,430 per 1kg.

Spot Gold Prices:

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. 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, as per Trading Economics.

What Is Impacting Gold Prices And Outlook?

As per Trading Economics, 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

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, thin trading volumes due to the holiday period and New Year celebrations have kept gold prices range-bound, with limited participation from market participants.

Should You Buy Gold, Silver?

For gold, Nirmal Bang's latest technical report said, gold prices are expected to correct. One can sell at 76500 with a stop loss of 76750 for the target 76150-76000.

Further, for silver prices, the brokerage's note said, one can sell at 88200 with a stop loss of 89000 for the target at 87200-86500.