Gold Prices In India, Holi, Good Friday: How Will Yellow Metal, Silver Perform This Week?

Gold prices stayed steady on March 25 during the occasion of the Holi festival, while silver prices picked up. These two pristine metals recorded fourth weekly gains in 5 during March month, and expectations of rate cuts are likely to further boost prices. This week, gold prices on MCX are expected to be near 67,000 levels, while silver may range between 73800-77000.

Gold Prices In India

22-carat gold prices stood at 61,250 in 10 grams, while 100-gram gold stood at Rs 6,12,500, 8 grams at Rs 49,000, and 1-gram at Rs 6,125.

While 24-carat gold in 10 grams was available at Rs 66,820 on March 25, 100 grams at Rs 6,68,200, 8 grams at Rs 53,456, and 1 gram at Rs 6,682.

Further, in 18-carat, 10 grams were priced at Rs 50,110, 100 grams at Rs 5,01,100, 8 grams at Rs 40,088, and 1 gram at Rs 5,011.

Silver Prices In India:

1 kg silver surged by Rs 300 to Rs 77,800, while 100 grams of silver was up by Rs 30 to Rs 7,780. Further, 1 gram to 10 grams of silver was up by Rs 0.30 to Rs 3 in India on March 25.

MCX Gold, Silver Prices:

MCX gold expiring on April 5, 2024, stood at Rs 65,870 per 10 grams on March 22nd. While the silver price expires on May 3, 2024, it was at Rs 74,810 per 1 kg. The market is closed on March 25 due to the Holi celebration.

Another big event this week will also be Good Friday, and the market will be closed on March 29 as well.

Gold, Silver Prices Outlook In Holiday-Shortened Week:

In its Wise Money report, SMC Global Securities said, "Gold recorded its fourth weekly gain in five, propelled by projections of rate cuts from the Federal Reserve for the year, which bolstered investor confidence. Despite the Fed maintaining steady rates, policymakers signalled their intention to reduce rates by three-quarters of a percentage point by the end of 2024, notwithstanding recent spikes in inflation. Fed Chair Jerome Powell emphasized that the elevated inflation figures did not alter the broader narrative of gradually alleviating U.S. price pressures.

As per the brokerage, given gold's lack of interest yield, it typically thrives when interest rates decline, diminishing the opportunity cost of holding the precious metal. Fed funds futures traders are now pricing in a 74% likelihood of rate cuts commencing in June, as per the CME Group's FedWatch Tool.

Meanwhile, the brokerage's note also said, the Bank of England opted to leave borrowing costs unchanged and hinted at a potential shift towards rate cuts as the economy moves in that direction. Unexpectedly positive data emerged on Thursday, with a decline in new claims for unemployment benefits in the U.S. and a significant uptick in sales of previously owned homes in February. However, the dollar rebounded following a surprise interest rate cut by the Swiss National Bank, boosting global risk sentiment and reinforcing the allure of the greenback amidst robust U.S. economic expansion.

On valuation, SMC's note said, "Gold spot on COMEX retreated after reaching an all-time high of 2222.91, with this level now acting as resistance. Support levels lie at 2140 and 2090. Silver prices on COMEX may fluctuate within the broader range of $22.60-$26.00. Looking ahead, gold prices on MCX are anticipated to experience significant volatility, finding support near 64500 and encountering resistance near 67000. Silver may trade within the range of 73800-77000."