Gold Prices In Big Cities Fall After Rs 16,400 Jump In 3 Days; How 24K, 22K, 18K Gold To Perform From Jan 5-11

Gold prices in India dropped sharply on Saturday, January 4th, after rising by Rs 16,400 per 100 grams in 24K in three prior days in a row. Gold prices started the New Year with massive rally globally, with India's MCX gold prices nearing Rs 78,000 per 10 grams mark. Similarly, silver prices witnessed a steep decline on Saturday. In the week ahead, gold and silver prices are likely to trade in a range of 75000-79500 and 87000-91000 respectively.

Gold Prices In India:

24K gold prices in 100 grams declined by Rs 4,900 to Rs 7,87,100 on Saturday, while 10 grams gold is down by Rs 490 to Rs 78,710. 24K gold prices in India surged by Rs 8,700 per 100 grams to Rs 7,92,000 on January 3rd, while prices are up by Rs 870 in 10 grams to Rs 79,200. Gold prices were up by Rs 3,300 and Rs 4,400 on January 2nd and January 1st in 100 grams. 24K/100 grams has cumulatively surged by Rs 16,400 in 3 consecutive days now. 10 Grams is up by Rs 1,640 in 3 days.

Meanwhile, on January 4th, gold prices in 22K of 10 grams stood at Rs 72,150, down by Rs 450. While 18k gold prices is at Rs 59,030 lower by Rs 370 in 10 grams. The prices of 100 grams gold in 22K and 18k has tumbled by Rs 4,500 and Rs 3,700.

Gold Prices In Big Cities:

Gold Prices In Chennai: Gold rates in this city declined by as low as Rs 35 to maximum Rs 4,900. 10 grams gold is at Rs 78,710 in 24K, at Rs 72,150 in 22K, and at Rs 59,600 in 18K.

Gold Prices In Mumbai: 22K carat gold prices were down by Rs 45 to Rs 4,500 across grams. While 24K carat gold prices slipped by Rs 49 to Rs 4,900, and 18K gold prices shed Rs 37 to Rs 3,700. 10 grams gold price is at Rs 78,710 in 24K, at Rs 72, 150 in 22K, and at Rs 59,030 in 18k.

Gold prices in Mumbai, is also the same in Pune, Kerala, Hyderabad, Bangalore, and Kolkata.

Gold Prices In Delhi: Gold prices in the national capital plunged by Rs 45 to Rs 4,500 in 22 carats, while prices nosedived by Rs 49 to Rs 4,900 in 24 carats, and lastly plummeted by Rs 36 to Rs 3,600 in 18k. The gold rates in 10 grams is at Rs 72,300 in 22K, at Rs 78,760 in 24K, and at Rs 59,160 in 18k. Gold is expensive in Delhi compared to other cities.

Silver Prices In India:

1Kg silver prices declined by 1,000 to Rs 91,500 on Saturday, while cheapest silver is lower by Re 1 to Rs 91.50. In cities like Chennai, Hyderabad, and Kerala, silver prices remained expensive to Rs 99,000 per 1 kg.

MCX Gold, Silver Prices:

MCX gold prices ended at Rs 77,320 per 10 grams on Friday, marginally up after hitting an intraday high of Rs 77,947 per 10 grams. The bullion was for February 2025 expiry.

While MCX silver prices stood at Rs 89,275 per 1kg, higher by Rs 54 or 0.06% on January 3, after hitting an intraday high of Rs 90,017 per 1kg. This was for March 2025 expiry.

Spot Gold Prices:

As per Trading Economics data, spot gold erased its earlier gain and eased to the $2,640 per ounce mark on Friday, trimming gains from the week as markets heeded hawkish expectations from the Fed. New data by the ISM showed that manufacturing orders and production expanded in December, potentially anticipating the recovery for the sector after a long period of underperformance. The survey also flagged factories' concerns over tariffs by the incoming presidential administration, adding to pro-inflationary risks that may prevent the Fed from extending its cutting cycle.

What Gold Prices Fell?

Trading Economics data highlighted that markets now show a loose split between one and two rate cuts by the central bank for the whole year. In turn, bullion prices remained supported by looser monetary policy elsewhere and a wave of central bank buying. The PBoC signaled that it will reduce the rate on its key reverse repo facility this year. This was after the central bank disclosed another month of bullion buying.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities added after MCX gold performance, that yellow traded with minor gains, ending ₹50 higher at ₹77,700 in the domestic market, while Comex gold maintained a sideways trend around $2,655.

Trivedi said, "The market remains steady, with limited movements as participants await further global cues to determine the next direction. The overall sentiment stays cautious amidst a consolidative phase."

Gold Prices Weekly Outlook:

According to SMC Global Securities Wise Money report, gold prices gained on the back of a softer U.S. dollar and safe-haven demand, with the metal poised for a weekly rise as focus shifted to U.S. President-elect Donald Trump's proposed policy changes. Trump's inauguration on January 20 has added to market uncertainty, with his protectionist policies and tariff proposals expected to be inflationary and potentially trigger trade wars, supporting gold's appeal as a hedge. On the geopolitical front, tensions remained elevated. Israeli airstrikes in Gaza killed at least 68 Palestinians, while Russia conducted a drone strike on Kyiv, Ukraine, causing damage in two districts. Such developments further bolstered safe-haven demand for gold amid rising global uncertainties.

Furthermore, SMC's note added that gold thrives in low-interest-rate environments and as a hedge against economic and geopolitical risks. While the U.S. Federal Reserve delivered its third consecutive rate cut last month, it now forecasts only two more reductions in 2025, tempering expectations of aggressive monetary easing. Investors are now eyeing key U.S. economic data, including job openings, the ADP employment report, Fed meeting minutes, and the nonfarm payroll report, due next week. These data points are expected to provide further clarity on the economic and interest rate outlook.

Looking ahead, SMC's weekly outlook note said, prices on COMEX for gold are expected to trade between $2,620 and $2,750, while silver may range between $28.50 and $31.20. On the MCX, gold prices are likely to move between Rs. 74,800 and Rs. 79,500, and silver may trade in the range of Rs. 85,500 to Rs. 91,000. The market will closely monitor upcoming economic data and geopolitical developments for further direction.