Gold prices in India are shaped more by global trading trends than by local demand and supply, with markets like London OTC and COMEX playing a key role.
“The US dollar has gained strength since mid-August, when it held important support at 100 points. The market’s bullish sentiment has only risen after the November election in the United States. President-elect Donald Trump’s ‘America-First’ policies are fueling anticipation of a rebound in American manufacturing, which will further promote economic development,” said Renisha Chainani, Head of Research at Augmont.
“What led to this was the election of Donald Trump as US president, which raised concerns that his tariff and tax cut policies would refuel inflation. The better-than-expected economic data, and the stickiness in inflation even before Trump’s policies were enacted, have also corroborated the idea that the Fed should not be in a rush to lower interest rates further. The strength of the Greenback may limit the upside potential of dollar-denominated gold, as a higher USD makes gold more expensive for buyers using other currencies. Other developments include geopolitical events that have an impact on the outlook of the precious metals markets. Russia’s drone activities in Ukraine, combined with Israel’s airstrikes in Gaza, have boosted demand for the safe-haven asset,” added Chainani.
“This week’s focus will be on the US Nonfarm Payrolls jobs data, which will begin the monthly cycle of US labour stats for 2025. January has consistently seen the highest price gains in the last 20 years as investors and asset allocators build new long positions, accompanied, of course, by strong jewellery demand over the holiday season. Gold has been taking support at the uptrend line for the past two months, and the prices have indeed taken support at Rs 76000 and are on the course of touching Rs 78500 soon,” Chainani added.
Gold and silver rates today, January 7
The 24-carat gold rate in India was Rs 78,700 per 10 grams on January 7. The rate for 24-carat gold per gram is Rs 7,870. While the rate of 22-carat gold was Rs 72,140 per 10 grams.
On January 7, 24-carat gold prices surged to Rs 78,700 for 10 grams, while silver fell to Rs 91,400 per kilogram, as per Good Returns.
Gold rate in Mumbai on January 7
The Gold rate in Mumbai is Rs 78,700/10 grams today.
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