Record-Breaking Gold Prices In Bangalore-Jan 31; 24K/100g Gold Climbs Rs 13,000 Pre-Budget 2025

Gold prices in Bangalore reached a record high today, as the country prepares for the much-anticipated Budget 2025, set to be presented by Finance Minister Nirmala Sitharaman tomorrow, February 1st. Investors and market participants are keenly awaiting any potential policy changes in the budget, particularly concerning import duties on gold, which could impact the prices and bring relief to buyers.

Globally, the gold market mirrored this upward trend, with international gold prices spiking to their highest levels. This surge comes as investors are anticipating key inflation data from the government. The heightened uncertainty around economic conditions, both domestic and global, has caused investors to flock to gold as a safe-haven asset, further pushing its prices to record levels.

Gold Prices Hit Record High Ahead of Budget 2025

Gold prices have surged to a record high ahead of Budget 2025, as investors eagerly anticipate potential changes in gold import duties. In Budget 2024, the government had reduced import duties on gold, bringing a sigh of relief to buyers and leading to a temporary decline in gold prices. This year, gold investors are once again looking forward to major policy decisions in Budget 2025 that could impact gold imports and the overall market.

On the international front, the spot gold market is witnessing a sharp uptrend, driven by rising economic uncertainties. A recent Reuters report highlighted that U.S. President Donald Trump announced plans to impose a 25% tariff on imports from Mexico and Canada, reigniting global trade concerns. This development has prompted investors to shift towards safe-haven assets like gold, further fueling its price surge. Meanwhile, the U.S. dollar index has also gained momentum, rising by 0.35% to 108.18.

Gold Prices in Major Indian Cities

Most of the Indian cities experience a decline in gold prices. Here are gold prices in some of the major cities in India:

Silver Prices in Bangalore Today

Silver prices in Bangalore on 31st January jumped once again. Silver rates in Bangalore per kilogram spiked by Rs. 1000 to cost Rs. 97,500 per kg. The price of 100 grams of silver is currently at Rs. 9,750 after Rising Rs. 100 per 100 grams.

Gold And Silver Future Price On MCX

On the Multi Commodity Exchange (MCX), gold futures, expected to mature on February 5, 2025, are trading higher by 0.17% at Rs. 81,858. However, silver futures, with an expiry date of March 5, 2025, are also surging this morning with a rise of 0.17% at Rs. 93,607.

Spot Gold and Silver Prices Today:

Reuters in its latest gold report stated that, "Spot gold remained steady at USD 2,794.61 per ounce as of 0408 GMT, after surging to an all-time high of USD 2,799.71 earlier in the session. The precious metal has gained over 6% this month, driven by increasing investor demand amid economic uncertainties. Meanwhile, U.S. gold futures edged up 0.2% to USD 2,826.90.

Silver prices, however, saw a slight dip, with spot silver declining 0.8% to USD 31.43 per ounce. Despite this, gold remains on track for weekly gains, fueled by safe-haven buying due to escalating U.S. tariff concerns. Investors are now closely monitoring an upcoming inflation report for further market cues."

Market Outlook On Gold Prices

According to ICICI Direct Commodity Research Report "Spot gold prices ended on a positive note gaining 1 .26 % , while Silver prices rose by 2 . 6 % yesterday amid softening of US treasury yields . Gold prices hit a lifetime high on safe haven demand due to concerns over global economic growth as US President Donald Trump tariff plans may ignite trade war . Additionally, monetary easing across other major central banks supported gold prices . ECB lowered borrowing cost for 5 th time since June. Spot gold is likely to continue with its upward trend and rise further hitting new highs amid softening of US treasury yields and rise in demand for safe haven. US President Donald Trump tariff plans are widely seen as inflationary and potential to trigger trade war hurting global economic growth. US President Donald Trump reiterated that the US would put a 25% tariff on imports from Mexico and Canada. Additionally, other major central bank's likely to continue with its rate cutting cycle. ECB cut borrowing cost by 25bps and left the door open to further rate cuts. Meanwhile, investors will remain cautious ahead of the US PCE price index report to get more clarity on the interest rate path. Spot gold is likely to rise further towards $2820 level as long as it trades above $2760 level."