Gold Rates Crash For First Time In 7 Days In Chennai, Gold Falls For 2nd Day In Hyderabad; 24K, 22K, 18K Gold

Gold rates in India crashed for second consecutive day on January 16, however, in city like Chennai, the yellow metal saw its first dip in seven days. Gold rates have tumbled for second time in a row in cities like Bengaluru and Hyderabad. Indian gold rates tracked the flat-to-positive performance in international prices after US announced to not immediately intervene with military in Iran as geopolitical tensions mount in the Islamic Regime. Nonetheless, the upcoming US Federal Reserve policy is approaching and market participants are predicting a rate cut which could be favourable for precious metals.

Gold Rates In India:

Gold Rates In Chennai:

Gold rates in Chennai saw its first crash in seven days. From January 9 to January 15, 100 grams and 10 grams gold price in 24 carat surged by Rs 58,900 and Rs 5,890 respectively. 10 grams hit a new all-time high of Rs 1,44,980 in the purest gold before correcting on January 16.

Hence, on January 16, 24 carat dropped by Rs 650 to Rs 1,44,330 per 10 grams, while 100 grams plunged by Rs 6,500 to Rs 14,43,300. Further, 8 grams and 1 gram of 24 carat tumbled by Rs 520 and Rs 65 to Rs 1,15,464 and Rs 14,433 respectively.

Further, in case of 22 carat, 10 grams gold plunged by Rs 600 to Rs 1,32,300 and 100 grams gold dropped by Rs 6,000 to Rs 13,23,000. Additionally, 8 grams gold is down by Rs 480 to Rs 1,05,840 and 1 gram gold edged lower by Rs 60 to Rs 13,230.

Under 18 carat, gold price dipped by Rs 400 to Rs 1,10,500 and 100 grams gold slipped by Rs 4,000 to Rs 11,05,000. Also, 8 grams gold lowered by Rs 320 to Rs 88,400 and 1 gram slipped by Rs 40 to Rs 11,050.

Gold Rates In Hyderabad:

Unlike Chennai, gold rates in Hyderabad saw their second consecutive day decline. On January 16, 24 carat gold recorded Rs 220 decline in 10 grams to Rs 1,43,400, while 100 grams gold plunged by Rs 2,200 to Rs 14,34,000. In the same carat, 8 grams gold is down by Rs 176 to Rs 1,14,720 and 1 gram is lower by Rs 22 to Rs 14,340.

Meanwhile, the 22 carat gold price witnessed Rs 200 and Rs 2,000 drop in 10 grams and 100 grams to Rs 1,31,450 and Rs 13,14,500 respectively. Further, 8 grams gold is down by Rs 160 to Rs 1,05,160 and 1 gram is lower by Rs 20 to Rs 13,145.

Additionally, the prices of 18 carat gold dropped by Rs 170 to Rs 1,07,550, down by Rs 1,700 to Rs 10,75,500, fell by Rs 136 to Rs 88,040 and lower by Rs 17 to Rs 10,755.

What Is Impacting Gold Prices?

According to Rahul Kalantri, VP Commodities, Mehta Equities, precious metals like gold and silver witnessed sharp volatility. This comes amid weaker-than-expected U.S. weekly jobless claims strengthened the dollar, while President Donald Trump's softer stance on Iran reduced safe-haven demand for precious metals. Meanwhile, recent data has kept expectations of Federal Reserve rate cuts on hold for the first half of the year, pushing the dollar index to multi-week highs and creating near-term headwinds for gold.

Moreover, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, gold traded in a flat-to-positive range, holding firm near Rs 1,43,150 in MCX and around $4,605 on Comex, as prices comfortably sustained above the $4,600 mark.

Gold Prices Prediction

In Trivedi's opinion, ongoing eopolitical uncertainty between the U.S. and Iran continues to lend support, even as Washington indicated no immediate military intervention if Iran refrains from escalating actions. However, the situation remains fluid with additional global flashpoints, including renewed strategic focus on Greenland, keeping risk sentiment elevated.

In this environment, gold continues to attract premium safe-haven demand as an alternative to the dollar. With the U.S. Federal Reserve's January policy meeting approaching, participants are closely tracking multiple triggers that could influence price action.

Hence, the analyst expects gold to remain volatile within a broad range of Rs 1,41,000-Rs 1,45,000 in the near term.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.