Gold Prices In India Weekly Outlook Ahead Of Dhanteras 2024: What Will Drive 24K/22K/18K Prices From Oct 21-25

Gold prices in India have continued to shine with 24K/10 grams yellow metal shy of hitting Rs 80,000 levels. Meanwhile, MCX gold futures have crossed the Rs 77,000 mark. Gold and silver prices are at all-time highs despite a surge in global equities and demand for the dollar. Going ahead, for the trading week of October 21-25, gold prices in India are expected to continue their gaining momentum.

Gold Prices In India: 22K/10 grams of gold is at Rs 72,800, while 24K gold is available at Rs 79,420 and 18K gold is Rs 59,570 per 10 grams. These prices are at an all-time high.

Silver Prices in India: 1kg silver is broadly Rs 500 away from touching the Rs 1,00,000 mark in India. The 1kg silver is currently at Rs 99,500. However, in cities like Chennai, Hyderabad, and Kerala, gold prices have risen to a record high of Rs 1,07,000 per 1kg.

MCX Gold, Silver Prices: At MCX, gold futures with December 2024 expiry, surged to hit a new high of Rs 77,839 per 10 grams before ending at Rs 77,750 per 10 grams. Further, MCX silver futures with December expiry climbed to hit an intraday high of Rs 95,521 per 1kg before closing at Rs 95,470 per kg. The precious metals were in green.

According to SMC Global Securities, gold continued to shine despite a robust equity market and a rebound in the dollar index, supported by stronger-than-expected data.

Gold Price Weekly Outlook:

In its weekly outlook report for October 21-25, SMC's note highlighted that gold prices surged to a new record high, driven by strong global demand for haven assets and expectations of further interest rate cuts from major central banks. The European Central Bank reduced rates for the third time this year, lowering the deposit rate to 3.25% while stating that the disinflationary process is progressing well.

Also, the brokerage pointed out that geopolitical tensions in the Middle East also supported gold prices after Israeli forces confirmed the death of Yahya Sinwar, a key Hamas leader, intensifying fears of regional escalation.

Additionally, the brokerage stated that concerns about underwhelming fiscal measures from China to address the property crisis, along with uncertainties surrounding the U.S. presidential election, led investors to shift away from riskier assets, further boosting bullion prices.

However, SMC also said, " strong U.S. economic data tempered gold's gains. The NY Empire State Manufacturing Index dropped to its lowest level in five months, signalling a contraction in business activity."

This reinforced expectations that the Federal Reserve may adopt a less dovish stance in the coming months. Investors are now awaiting key U.S. retail sales data and a speech from Fed Governor Waller for further insight. Market sentiment currently reflects a 98% chance of a 25-basis-point cut in the federal funds rate in November, it added.

Looking ahead, SMC's note said, " On Comex, gold prices are expected to hold support near $2,620, with a potential rise above $2,700. Silver is likely to trade between $31 and $34. In the coming week, gold on MCX may trade within the ₹76,000-₹79,500 range, while silver is expected to move between ₹89,800 and ₹96,000."