Gold Prices Reaction Ahead Of US Inflation Data; Will Israel-Gaza Ceasefire Deal Impact 24K, 22K, 18K Prices?

Gold prices in India rallied on Wednesday, January 15th ahead of US inflation data that is the key focus of investors since it gives further clarity of Fed rate cut outlooks. If US inflation surges more than expected, chances of a cautious tone in gold. However, a new drawback for the rally in gold prices is emerging with the Israel-Gaza ceasefire deal back in the limelight. As per reports, Qatar is optimistic that the nearly 13-month-long war between Israel and Hamas could be at closing point, as the terrorist group of Gaza has agreed to a new ceasefire draft.

Gold Prices In India:

24K gold prices in India are at Rs 80,070 per 10 grams, higher by Rs 110 on Wednesday. While 22K gold price surged by Rs 100 to Rs 73,400 per 10 grams, and that of 18k gold prices soared by Rs 90 to Rs 60,060 per 10 grams.

After two consecutive months of decline, gold prices have witnessed a huge bullish trend in January 2025, with 24K and 22K prices surging by at least 3% between the 1st to 15th.

Silver Prices In India:

1 kg silver price in India advanced by Rs 1,000 to Rs 93,500. In cities like Chennai, Kerala and Hyderabad, the prices were at Rs 1,01,000 per 1kg.

MCX Gold, Silver Prices:

MCX gold price climbed by Rs 282 to Rs 78,438 per 10 grams, at the time of writing. This bullion which has a February 2025 expiry, is trading near its day's high of Rs 78,489 per 10 grams.

Also, MCX silver price is performing near its intraday high of Rs 91,100 per 1kg. The precious metal with an expiry of March 2025, is up by Rs 456 or 0.50% to trade at Rs 91,012 per 1kg at MCX.

Spot Gold Prices:

As per Trading Economics, gold prices rose to around $2,680 per ounce on Wednesday, extending gains from the previous session as investors braced ahead of US consumer inflation data later today. Any signs of resurging inflation could spur further cautious adjustments to the Federal Reserve's rate-cut expectations. On Tuesday, the metal found some support after a softer-than-expected US PPI report, sparking faint hopes that the Fed might have room for additional rate cuts this year.

Will the Israel-Hamas ceasefire deal impact gold?

Rahul Kalantri, VP of Commodities, Mehta Equities said, that the recent media reports suggest that Israel and Hamas are close to signing a ceasefire deal and it includes the release of Israeli hostages by Hamas and could limit safe-haven demand for precious metals.

Along similar lines, Dr. Renisha Chainani, Head of Research at Augmont said that the positive developments that a ceasefire in the Israel-Hamas battle in Gaza is getting closer and that talks to end the conflict are nearing completion are causing a decline in the price of precious metals.

Chainani added, but following a disappointing PPI, bullion prices are attempting to rise from the weekly low, driven by expectations of looser Fed policies. The impending CPI is the main focus; cooler data may increase the likelihood of rate reduction. The disinflation trend may be ongoing if December readings fall short of the 2.7% figure from the previous month. After increasing 2.4% YoY in September, inflation has increased to 2.6% since October.

Furthermore, Chainani said, "Trump tariffs might raise inflation, which would affect gold prices and market mood. Donald Trump will become the next president of the United States in six days. Although his threats have mostly targeted China, Canada, and Mexico, he has threatened to implement worldwide tariffs. A trade war might rekindle inflation if he moves forward with this."

Technical Triggers For Gold Prices:

Kalantri said, Gold has support at $2652-2640 while resistance at $2685-2698. Silver has support at $29.50-29.35 while resistance is at $29.88-30.05. In INR gold has support at Rs 77,980-77,750, while resistance at Rs 78,370-78,550. Sliver has support at Rs 89,740-89,170 while resistance at Rs 91,150-91,980.

While Chainani believes Gold has achieved the target of $2720 (~Rs 78500). Gold could see some profit-booking for the next 2-3 days now. The expert added, Silver prices have corrected after touching the target of Rs 92500. It seems prices shall consolidate here for a while.