Gold Prices Rally For 2nd Day In Row; Why 24K, 22K, 18K Prices Are Up On January 2, And Good Time To Buy?

Gold prices in India rallied for the second consecutive day on Thursday, January 2, 2024. The prices surged by up to Rs 3,300 currently compared to the previous session's surge of Rs 4,400. Uncertainties revolving around Donald Trump's tariff and policies, coupled with geopolitical tensions have supported gold prices at the start of the new year. MCX gold crossed the Rs 77,000 mark per 10 grams.

Gold Prices In India:

24K gold prices surged by Rs 3,300 to Rs 7,83,300 in 100 grams, while 10 grams gold is up by Rs 330 to Rs 78,330 on Thursday. The prices were up by Rs 4,400 in 100 grams and higher by Rs 440 in 10 grams on January 1st. In two consecutive days, gold prices surged by Rs 7,700 per 100 grams and by Rs 770 in 10 grams. Currently, the 22K gold price is at Rs 71,800 for 10 grams, and at Rs 59,250 per 10 grams for 18k.

MCX Gold Prices:

MCX gold prices with February 2025 expiry, climbed to hit an intraday high of Rs 77,188 per 10 grams. The prices are currently trading at Rs 77,090 per 10 grams, up by Rs 197 or 0.26%.

While MCX silver prices with the March expiry of 2025, surged to touch an intraday high of Rs 88,649 per 1kg. The prices are currently at Rs 88,440 per 1kg, up by Rs 862 or 0.98%.

Spot Gold Prices:

As per Trading Economics data, spot gold rose above $2,630 per ounce on Thursday, extending gains after soaring 27% last year, its best performance since 2010. The surge has been fueled by US monetary easing, ongoing geopolitical tensions, and record central bank acquisitions.

What Is Driving Gold Prices?

Trading Economics data, investors are now seeking fresh catalysts that could impact the Federal Reserve's monetary policy this year, after Chair Jerome Powell recently expressed caution over further rate cuts due to renewed inflation concerns. This hawkish signal dampens the appeal of non-yielding gold.

Additionally, it added, traders are weighing potential challenges under the incoming Trump administration and China's push for economic recovery. Meanwhile, a World Gold Council survey suggests that major central banks are likely to purchase more gold in the next 12 months, which could further support demand for the yellow metal.

Further, explaining in detail, Rahul Kalantri, VP Commodities, Mehta Equities said, gn the first day of 2025, gold and silver ended with modest gains, as the lacklustre market as most global markets closed for New Year celebrations. On Thursday, Gold and silver prices trades with gains during the early Asian session. The uncertainties around Donald Trump's tariff policies, geopolitical risks, and central bank buying support the precious metal. Gold price also get support from weak china manufacturing data released today morning.

Also, Kalantri added, China General Manufacturing PMI fell to 50.5 in December 2024, missing market estimates of 51.7. We are expecting Gold and silver prices could maintain positive momentum in today's session. Gold has support at $2615-2600 while resistance at $2647-2662. Silver has support at $29.10-28.88 while resistance is at $29.40-29.55. In INR gold has support at Rs 76,680-76,520, while resistance at Rs 77,050-77,210. Sliver has support at Rs 87,080-86,500 while resistance at Rs 88,230-88,700.

Should YOU BUY Gold or silver?

As per Nirmal Bang's technical report dated January 2nd, gold prices are expected to rise. Traders can buy at 77000 with a stop loss of 76750 for the target at 77350-77600.

For silver, the brokerage said, prices are expected to rise. One can buy silver at 89000 with a stop loss of 88200 for the target at 90000-90500.