Gold Prices in India: Outlook for January 21 After Trump's Inauguration
Impact of Trump's Inauguration on Gold Prices
Gold prices in India are expected to be influenced by international prices following Donald Trump's inauguration, where he signed eight executive orders. However, specific changes, particularly regarding US trade policy, are yet to be announced. On January 20th, gold prices in India climbed across all major carats ahead of Trump's inauguration, with the dollar index experiencing a downturn.
Gold Prices on Inauguration Day
On January 20th, the day of Donald Trump's inauguration, the price of 24K gold rose by ₹1,200 per 100 grams to ₹8,12,300 and by ₹120 to ₹81,230 per 10 grams. The price of 22K gold increased by ₹1,500 to ₹7,45,000 per 100 grams and by ₹150 to ₹74,500 per 10 grams. The price of 18K gold surged even higher, rising by ₹1,700 per 100 grams to ₹6,10,000 and by ₹170 per 10 grams to ₹61,000.
MCX Gold and Silver Prices
MCX gold prices surged to ₹78,550 per 10 grams, after hitting an intraday high of ₹79,150 per 10 grams on January 20th. However, silver prices dipped to close at ₹91,411 per 1kg, after reaching an intraday high of ₹91,999 per 1kg on MCX.
Spot Gold Prices
Spot gold prices stood at $2,715.5 an ounce on Monday, bolstered by inflation expectations, Federal Reserve policy shifts, and fiscal uncertainty.
Factors Influencing Future Gold Prices
According to Trading Economics data, President Trump's declaration of a national energy emergency, emphasizing expanded oil and gas production, could reduce energy costs and ease inflationary pressures, potentially decreasing gold’s appeal as an inflation hedge. However, fiscal and trade policy uncertainty, along with the abandonment of renewable energy commitments and the Paris Accord, supports safe-haven demand for gold.
The data further noted that a weaker dollar following Trump's inauguration further underpins gold, while expectations of limited Fed rate hikes amid soft U.S. economic data add to its allure. Although geopolitical stability, including a potential Middle East ceasefire, has slightly tempered risk aversion, Trump's broader economic agenda fuels volatility, sustaining gold's prominence.
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