Gold prices in India witnessed a bullish week, outperforming benchmarks like Sensex and Nifty. Gold rates in the country have surged for the fourth consecutive day and Saturday, January 11 was no different. Yellow metal prices spiked despite stronger dollar and treasury yield, shrugging off the uncertainty revolving around Fed rate cuts in 2025. In the week ahead, gold and silver may trade in the upper range of 77000-79500 levels and 90000- 95000 levels respectively.

Gold Prices In India:

On January 11, gold prices in India reached Rs 79,640 per 10 grams in 24K, while gold hit Rs 73,000 per 10 grams mark in 22K. While the 18K gold price jumped to Rs 59,730 per 10 grams. On Saturday, gold prices were up by Rs 12 to Rs 1,700 across 1 gram to 100 grams.

The latest upside takes gold price performance higher by 2.1% in 24K and 22K in just 11 days of January 2025.

The performance tracks the upside in spot gold prices which reached above $2,680 per ounce by the end of January 10, making it the highest level since mid-December 2024. Spot gold also extended its gains for the fourth consecutive session. Moreover, gold prices surged to record their best weekly gains since mid-November last year.

Trading Economics data said this came despite a stronger-than-expected jobs report highlighting the resilience of the US labour market and supporting the Federal Reserve’s cautious stance on rate cuts. The economy added 256K jobs in December, beating forecasts of 160K, while unemployment dropped to 4.1% from 4.2%.

Additionally, at MCX, the gold price with February 2025 expiry, ended at Rs 78,400 on January 10 after surging to Rs 78,794 per 10 grams during the session. Also, MCX silver price with March 2025 expiry, reached as high as Rs 93,643 per 1kg before pulling back and closing at Rs 92,466 per 1 kg on Friday.

Gold Prices In India Weekly Outlook:

In its WISE Money report, SMC Global Securities said, “Gold prices recorded their best weekly gain since mid-November, with investors focused on upcoming U.S. jobs data to assess the Federal Reserve’s interest rate trajectory for the year. The key government payrolls report is expected to show a December increase of 160,000 non-farm jobs, following a 227,000 rise in November, according to a Reuters survey.”

Additionally, reports suggest President-elect Trump may declare an economic emergency to facilitate tariff implementation smoothly. These developments could bolster the dollar, potentially pressuring gold in the near term, the brokerage added.

Recently, gold surged to a near four-week high, driven by safe-haven demand, as markets evaluated the economic and inflationary impacts of Trump’s policies. His return to office on January 20, with proposed tariffs and protectionist measures, is expected to fuel inflation. Kansas City Federal Reserve President Jeff Schmid expressed hesitation in further rate cuts, citing a robust economy and inflation above the 2% target, SMC’s note highlighted.

It further said, “While gold is traditionally viewed as a hedge against inflation, higher interest rates diminish its appeal as a non-yielding asset. Minutes from the Fed’s December meeting highlighted concerns about the inflationary impact of Trump’s policies, which could extend challenges in controlling rising prices.”

For the week ahead, SMC’s note said, “On COMEX, gold prices are hovering near $2,700. Sustained movement above this level could trigger an upward rally towards $2,760, while support is seen near $2,640. Silver is expected to trade between $29.90 and $33.00. On MCX, gold prices are likely to range between ₹76,000 and ₹79,500, while silver may trade between ₹89,500 and ₹94,000 in the upcoming week.”