Gold Prices In India Weekly Outlook, Guru Nanak Jayanti 2024; How 24K, 22K, 18K To Perform From Nov 11-15

Gold prices in India started on a negative note with carats like 24K, 22K and 18K falling sharply on Monday, November 11, 2024. A similar trend was witnessed in silver prices. They tracked the prices at MCX and the international market which traded lower as well. Gold prices in India and globally are expected to remain volatile, as dollar and treasury yields continue to strengthen. The next key event in India will be its upcoming inflation data and occasions like Guru Nanak Jayanti. Also, US inflation data will be announced this week.

Upcoming inflation data will be vital to understand what could be RBI and the US Federal Reserve's next policy decision. It will also be keenly watched if RBI will follow the Fed's latest 25 bps rate cut.

Gold Prices In India:

24K gold price is Rs 7,87,600 for 100 grams and Rs 78,760 for 10 grams. While 22K gold prices are at Rs 7,22,000 for 100 grams and Rs 72,200 for 10 grams. Further, gold prices are at Rs 5,90,700 in 100 grams of 18K, and at Rs 59,070 in 10 grams. Gold prices in India witnessed a big drop in the range of Rs 45 to Rs 6,000 on Monday.

Silver Prices In India:

A sharp decline was also seen in 1kg silver prices in India by Rs 1,000 to Rs 93,000 1kg on November 11. However, 1kg silver prices continued to be at Rs 1,02,000 in cities like Chennai, Kerala and Hyderabad.

MCX Gold, Silver Prices:

MCX gold futures with December expiry, declined by Rs 1,916 or 2.48% to end at Rs 75,356 per 10 grams. While MCX silver prices with December expiry, dropped by a huge Rs 2,170 or 2.4% to close at Rs 89,099 in 1kg on Monday.

Spot Gold, US Gold Futures:

On November 11, Spot Gold price dipped by 2.6% to trade at $2,613 an ounce, and is near its day's low of $2,612.78 an ounce. While US spot gold futures plunged by 2.8% to trade at $2,620 an ounce, which is also near its day's low of $2,619.40 an ounce.

Gold Prices Weekly Outlook:

According to SMC Global Securities weekly outlook gold prices faced pressure due to a stronger U.S. dollar and rising Treasury yields following the U.S. presidential election win by Republican nominee Donald Trump. Markets appear to be reacting to expectations that Trump's economic policies, planned for early 2025, could drive long-term inflation. His proposed protectionist policies may signal a return to trade tensions between the U.S. and its key trading partners, fuelling inflation concerns.

Further, the brokerage highlighted that rising inflation typically reduces the appeal of non-interest-bearing assets like gold. If inflation picks up, the Federal Reserve may adopt a less accommodative stance on rate cuts, further weighing on gold.

The US Bureau of Economic Analysis recently reported that the September Personal Consumption Expenditures (PCE) Index grew at an annualized rate of 2.1%, down slightly from 2.2% in August and aligning with market expectations. Core PCE, which excludes volatile items, rose by 0.3% month-over-month, an increase from August's 0.2%, the brokerage cited.

Additionally, the PCE Index, the Fed's preferred inflation measure, is one of two key data points before the Fed's Nov. 7 interest rate decision. The Non-Farm Payrolls report is also set to be released on Friday. Markets widely expect a 25 basis point rate cut at the upcoming Fed meeting, it said.

In India, SMC's note said that gold imports surged 21.78% to $27 billion between April and September, driven by robust domestic demand. Switzerland remains the top gold exporter to India, accounting for 40% of imports, followed by the UAE and South Africa.

For November 11-15, the brokerage stated that on the Comex, gold is expected to trade between $2,580 and $2,760, with silver in the $30-$33 range. In the Indian market, gold could see volatility within Rs. 75,000-Rs. 79,000, and silver may trade in a wide range of Rs. 88,000-Rs. 94,800 levels.