Gold Prices In India Outlook On January 28; How 24K, 22K, 18K Prices Will Perform Ahead Of Fed Policy On Tues?

Gold prices in India are likely to witness range-bound performance on Tuesday, January 28 as focus shifts towards the US Federal Reserve's monetary policy outcomes. Jerome Powell and his team will announce the first policy outcomes under Donald Trump 2.0. The start of the week has been volatile for gold prices globally. Nonetheless, MCX gold touched a new high before correcting.

Ahead of US Federal Reserve's policy, in India, 24 K gold prices were at Rs 82,250 per 10 grams on Monday, down by Rs 170. Meanwhile, 22K and 18K gold prices dipped by Rs 150 and Rs 130 to Rs 75,400 and Rs 61,690 per 10 grams, respectively. The performance tracks pullback in international prices.

On the other hand, MCX gold and silver prices witnessed a volatile trend. MCX gold with its February 2025 expiry, touched a new all-time high of Rs 80,151 per 10 grams on Monday, before correcting to Rs 79,623 per 10 grams. MCX silver prices also surged to hit an intraday high of Rs 91,388 per 1 kg, before closing at Rs 90,275 per 1kg. Both the precious metals were marginally up after the closing bell.

Spot Gold Prices:

As per Trading Economics data, gold reversed course to trade below $2,735 per ounce on Monday from the over-two-month high of $2,770 last session, as investors favoured fixed income and defensive equities instead of bullion following a recalibration of future returns for the heavyweight US tech output.

What Will Impact Gold Prices On Tuesday?

Trading Economics data highlighted that expectations of lower rates by the Fed this year limited the pullback. The central bank is expected to hold rates unchanged this week, but investors are hopeful that Chairman Powell will refrain from delivering overly hawkish guidance after the latest CPI data indicated some softening in underlying inflation.

It added that pro-inflationary risks from US trade policy were also tempered as President Trump relaxed his rhetoric on tariffs against China and held off on taxing Colombian exports after the White House agreed on an expatriation deal with Bogota. Markets expect the Fed to deliver two rate cuts this year, with a slight consensus for a first move in May, favouring the outlook of non-interest-bearing assets.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, gold experienced volatile trading as the first session of the week saw profit booking, with Comex gold encountering resistance near $2,770 but maintaining strong support around $2,750, showcasing resilience to break below that level.

Trivedi added, "In the domestic market, MCX gold traded within a range, with buyers capitalizing on the weak opening as Rs 79,675 provided immediate support ahead of the U.S. Federal Reserve's interest rate decision. The upcoming Fed policy announcement remains a key focus for market participants, and gold is likely to remain range-bound, trading between Rs 79,000 and Rs 80,600 in the short term."