Gold Prices In India Outlook: How Will 24K, 22K, 18K Prices Perform From January 19-25

Gold prices in India have continued to keep their weekly momentum with US inflation data easing better than expected, heightening the probability of a rate cut from US Fed ahead. However, on Saturday, January 18, a mixed trend was witnessed in gold and silver prices in India. 24K gold price dipped by Rs 1,600 in 100 grams, while silver prices were unchanged. Nonetheless, gold price in 10 grams stays above Rs 81,000 mark. In the week ahead, gold and silver are expected to trade in the ranges of 77,000-80,000 and 90,000-95,000, respectively.

Gold Prices In India:

24K gold price in India dropped by Rs 1,600 in 100 grams to Rs 8,11,100, while 10 grams gold dipped by Rs 160 to Rs 81,110.

Further, 22K gold price slipped by Rs 1,500 to Rs 7,43,500, and 10 grams gold is down by Rs 150 to Rs 74,350. Also, 18K gold price tumbled by Rs 1,300 to Rs 6,08,300, and 10 grams price is lower by Rs 130 to Rs 60,830.

Silver Prices In India:

Silver prices were unchanged on January 18. 1Kg silver price is at Rs 96,500. In cities like Chennai, Hyderabad and Kerala, silver has reached at Rs 1,04,000 per 1kg.

MCX Gold, Silver Prices:

MCX gold price with February 2025 expiry, stood at Rs 79,019 per 10 gram, broadly flat on Friday. While MCX silver price was marginally lower to Rs 91,504 per 1kg.

Spot Gold Prices:

As per Trading Economics data, spot gold price traded around $2,710 per ounce on Friday, hovering near a one-month high and on track for a third weekly advance. Recent U.S. economic data, including cooler-than-expected core inflation and disappointing retail sales figures, have rekindled hopes that the Federal Reserve may cut rates more than once this year.

What Will Drive Gold In Week Ahead?

In its weekly outlook report, SMC Global Securities said, gold recorded its third consecutive weekly gain, driven by U.S. inflation data that raised expectations of further Federal Reserve rate cuts this year. On Thursday, gold surged over 1%, reaching its highest level since December 12, as weak U.S. economic data pushed Treasury yields lower and pressured the dollar. Inflation data and Fed Governor Christopher Waller's comments on the possibility of three to four rate cuts this year bolstered market expectations, with the first cut anticipated as early as May.

Further, SMC's note said, uncertainty surrounding President-elect Donald Trump's upcoming second-term policies has also heightened gold's appeal as a hedge against inflation and short-term volatility. Analysts expect his measures could further stoke inflation, supporting non-yielding gold as a safe-haven asset.

The U.S. Bureau of Labor Statistics said the Consumer Price Index (CPI) rose by 0.4% in December, up from 0.3% in November and ahead of the consensus estimate for a rise of 0.3%. Core CPI, excluding food and energy, rose 3.2% annualized, under the consensus outlook for a 3.3% rise. Labor market softness was highlighted by initial jobless claims rising to 217,000 last week, exceeding forecasts, it highlighted.

SMC stated that such has reinforced expectations for 37 basis points of Fed rate cuts by year-end, up from the previous estimate of 31 bps. On COMEX, gold prices are hovering near $2,760, with a potential rally to $2,820 if this resistance is breached and sustained, or a decline to $2,680 if it fails. Silver is expected to trade between $29.10 and $32.50.

In the week ahead, SMC's note said, on MCX, gold may trade in the Rs. 77,500-Rs. 80,000 range, while silver could range between Rs. 87,000 and Rs. 94,000. Meanwhile, geopolitical tensions persist as Israeli airstrikes in Gaza killed at least 77 people, hours after a ceasefire was announced to end a 15- month conflict, further adding to market uncertainty.