Gold Prices In New Year Bonanza, Jumps Rs 16,400 In 3 Days: Why 24K, 22K, 18K Prices Are Rising?

Gold prices in India continued on their massive jump on Friday, January 3, 2025, extending its rally for three consecutive days now. 24K/100 grams gold prices have skyrocketed by a whopping Rs 16,400 in the span of three days, while 10 grams gold of the same has crossed the Rs 79,000 mark. 22K and 18K gold is also nearing to Rs 73,000 and Rs 60,000 mark. Silver prices in India also made a sharp jump, with cities like Chennai, Hyderabad and Kerala seeing a price range of Rs 1,00,000 per 1kg. Gold prices are up tracking a bullish trend in international prices and New Year Bonanza.

Gold Prices In India:

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.

Similarly, gold prices in 22K and 18K are also up. 10 grams of gold is at Rs 72,600 in 22K, up by Rs 800 on January 3rd, while 100 grams of gold is at Rs 7,26,000 up by Rs 8,000 in a single day. 18K gold prices are at Rs 59,400 per 10 grams higher by Rs 650 and up by Rs 6,500 for 100 grams to Rs 5,94,000.

These surges were visible across cities of India.

Gold Prices In Major Cities:

Gold Prices In Chennai: 10 grams gold price in Chennai is at Rs 79,200 up by Rs 870 on January 3, while 100 grams gold is higher by Rs 8,700 in 24K to Rs 7,92,000. 22K and 18K gold prices are at Rs 72,600 and Rs 59,950 per 10 grams, rising by Rs 800 and Rs 700 in a single day.

Gold Prices In Mumbai: In the financial hub, gold prices in 10 grams of 24K is at Rs 79,200 up by Rs 870, and higher by Rs 8,700 in 100 grams to Rs 7,92,000. Further, 10 grams of 22K surged by Rs 800 to Rs 72,600, and also up by Rs 650 to Rs 59,400 per 10 grams in 18K.

Gold prices are similar in cities like Bangalore, Kolkata, Hyderabad, Kerala, and Pune.

Gold Prices In Delhi: 10 grams gold price in Delhi climbed by Rs 870 on January 3rd to Rs 79,350, while the price was higher by Rs 8,700 to Rs 7,93,500 for 100 grams. 22K and 18K gold prices climbed by Rs 800 and Rs 650 to Rs 72,750 and Rs 59,520 per 10 grams.

Silver Prices In India:

Silver prices also witnessed huge surge by Rs 2,000 to Rs 92,500 per 1kg. Silver touched Rs 1,00,000 mark in cities like Chennai, Delhi and Kerala. Cheapest silver is available at Rs 92.50 per 1 gram.

MCX Gold, Silver Prices:

MCX gold prices with February 2025 expiry, touched an intraday high of Rs 77,947 per 10 grams, before trading at Rs 77,855 per 10 grams up by Rs 138 or 0.2%. While MCX silver with March 2025 expiry climbed by Rs 58 or 0.07% to trade at Rs 89,231 per 1 kg, which was near its intraday high of Rs 89,415 per 1kg.

Spot Gold Prices:

Spot gold skyrocketed above $2,660 an ounce on Friday, all set to mark its weekly gain driven by safe-haven demand and expectations of continued central bank purchases.

Why Gold Prices Are Rising?

As per Trading Economics, geopolitical tensions continued to support the yellow metal, particularly after Russia launched a drone attack on Kyiv and Israel targeted a neighborhood in Gaza City. Additionally, a recent survey by the World Gold Council suggested that major central banks are likely to purchase more gold over the next 12 months. On the economic front, data released on Thursday showed that U.S. jobless claims fell to an eight-month low in the final week of 2024, underscoring the resilience of the labor market.

Data of Trading Economics pointed out that last month, the Federal Reserve signaled a measured and cautious approach to rate cuts this year, citing the strength of the economy and the job market. This dampens the appeal of non-yielding gold. Meanwhile, investors continued to assess the implications of a second Donald Trump presidency and China's efforts to revive its economy.

Further, Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver prices began 2025 on a strong note, with gold surpassing $2,660 and silver exceeding $29.40 on Thursday. Safe-haven demand, driven by ongoing geopolitical tensions, has provided significant support for gold prices. Furthermore, anticipated policies under former President Donald Trump's administration, such as higher tariffs and tax cuts, are expected to increase inflationary pressures, enhancing gold's appeal as a hedge.

However, Kalantri pointed out the strength of the US dollar could limit gold's upward movement. In the U.S., unemployment claims dropped by 9,000 last week, reaching 211,000-the lowest level since March. This positive labour market data has contributed to the US dollar's bullish momentum, lifting it above the 109 mark. Investors are now looking ahead to Friday's release of the ISM manufacturing data, which is expected to provide further direction for the currency.

Gold Prices Outlook Ahead:

Mehta Equities expert said, gold finds support at $2,640-$2,622 and resistance at $2,671-$2,685, while silver has support at $29.30-$29.12 and resistance at $29.78-$29.95. In INR, gold has support at Rs 77,510-Rs 77,380, with resistance at Rs 77,970-Rs 78,110. Silver has support at Rs 88,410-Rs 87,970, and resistance at Rs 89,710-Rs 90,280.

BUY Gold, Silver? As per the Technical Commodities report of Nirmal Bang dated January 3, gold prices are expected to rise. One can buy at 77750 with a stop loss of 77450 for the target at 78100-78300.

On silver, Nirmal Bang's report said, silver prices are expected to rise. One can buy at 89200 with a stop loss of 88300 for the target at 90500-91000.