Daily gold price (January 25): Forecast and updates
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Gold Price updates in India

Gold has over the years been a perfect hedge against inflation. Investors are increasingly looking at gold as an important investment, according to Goodreturns.

Today 22 Carat Gold Price Per Gram in India (INR)

Daily gold price (January 25): Short-team outlook, Forecast and updates
Photo: Goodreturns

Today 24 Carat Gold Rate Per Gram in India (INR)

Daily gold price (January 25): Short-team outlook, Forecast and updates
Photo: Goodreturns

Indian Major Cities Gold Rates Today

Daily gold price (January 25): Short-team outlook, Forecast and updates
Photo: Goodreturns

How is the hallmarked gold rate today in India determined?

Now, first, the important thing is that there is no difference between normal gold rate and hallmarked gold rate.

Nobody charges extra for giving you hallmarked gold rate. It is the same rate at which the normal gold is sold. The only difference is that you are ensured of purity when you buy normal gold.

Hallmarked gold rate vs normal gold rate 1) There is no difference in gold prices 2) You are ensured of purity through hallmarking. 3) You have to take the precious metal to the essaying centres 4) Not many essaying centres are available in the market. 5) Some have advocated a stringent quality practice that has to established at the testing centres. 6) Still some way to reach the town and smaller cities. 7) Focus must be on swift expansion of the essaying centres so the smaller jewellers can make the best use of it.

The one thing that we need to mention is that hallmarked gold rates today in India do not differ in their pricing. What does differ is the quality of the precious metal. In any case what we advocate when you are buying is to buy into very high quality stuff. If there are no charges and difference between the two, it is better to stick to the quality hallmarked products. Investors have voiced their opinion on the poor number of hallmarking centres in the country and this needs to be addressed at the very earliest by the government of India. There is an urgent need to start more hallmarking centres, so quality gold is taken to all consumers in the country.

Daily gold price (January 24): Short-Term Outlook, Forecast and Updates Daily gold price (January 24): Short-Term Outlook, Forecast and Updates
Daily gold price (January 23): Forecast and updates Daily gold price (January 23): Forecast and updates

Gold Price Tracks Weakness in US Treasury Yields Ahead of Fed Meeting

The price of gold pulls back from the weekly high ($1875) to largely track the recent weakness in longer-dated. US Treasury yields, and the Federal Reserve’s first meeting for 2021 may do little to prop up the precious metal as the central bank relies on its non-standard tools to achieve its policy targets, said Dailyfx.

Fundamental Forecast for Gold: Bearish

The price of gold may continue to give back the rebound from the monthly low ($1803) as the Federal Open Market Committee (FOMC) remains “commitment to using its full range of tools to support the U.S. economy during this challenging time,” and it seems as though the central bank will continue to utilize its balance sheet “until substantial further progress has been made toward reaching the Committee's maximum employment and price stability goals.”

The minutes from the December meeting suggests the FOMC is in no rush to scale its emergency measures as “all participants judged that it would be appropriate to continue those purchases at least at the current pace,” and it remains to be seen if the Fed will adjust the forward guidance in 2021 as “some participants noted that the Committee could consider future adjustments to its asset purchases—such as increasing the pace of securities purchases or weighting purchases of Treasury securities toward those that had longer remaining maturities—if such adjustments were deemed appropriate.”

In turn, key market themes may continue to sway financial markets as the Fed’s balance sheet climbs to a fresh record high of $7.415 trillion in the week of January 20 from $7.334 trillion the week prior, and it remains to be seen if the price of gold will continue to track US Treasury yields as the low interest rate environment along with the ballooning central bank balance sheets no longer provides a backstop for the precious metal.

With that said, the FOMC interest rate decision may do little to prop up the price of gold as long as the central bank stays on track to increase its “holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month,” and bullion may continue to give back the rebound from the monthly low ($1803) if the recent weakness in longer-dated US yields persists.

Gold prices may hit $1,920-mark in one month; vaccination drive, dollar movement key

The year gone by (2020) will be etched in human minds for a very long time as mankind has never faced a situation wherein the global world was in a lockdown mode due to the havoc created by Covid-19 pandemic, Economictimes reported.

The United States, which accounts for just 4 per cent of the global population, had 20 percent of all corona deaths was at the core focus as the country was hit by a second wave of the virus, resulting in much more deaths than the first wave.

This was followed by the elections in the US, which culminated into the appointment of new President.

Joe Biden at a time wherein the outgoing President Trump was about to be impeached for the second time in his term of 4 years although Trump survived the first impeachment. Moreover, Trump's possibility to order a strike on Iran’s main nuclear facility Natanz on the grounds that it is being used to enrich uranium was also under consideration. In totality, the US has now become the world’s new epicentre of political and geo-political instability in the months and years ahead.

Dollar weakness: A major boost to gold and vice-a versa

Dollar, which is also considered to be a safe haven, has already lost its value by 6 per cent in 2020, and effects of the massive monetary easing in the US are expected to combine with a post pandemic reversal of last year’s financial flight into safe US assets, which will likely weaken the greenback further in 2021. Dollar weakness and gold prices are inversely correlated and if it weakens further, there is more room further, there is more room for gold prices to move higher in the months ahead.

On the contrary, the dollar has gained its value in January by 1.4 per cent on account of mass inoculation programmes in the US, the UK, India, which led to the fall in gold prices by around 3 per cent in January 2021, in the international as well as domestic markets.

Easy money policy: The game is on

The next round of fiscal stimulus in the United States was now in focus with President Joe Biden's $1.9 trillion stimulus package proposal. Euro zone finance ministers also pledged continued fiscal support for their economies. While the global equities have been doing well, the underlying economy still remains weak because of which the central bank is trying to do whatever it can to bring in normalcy back into the economy, which is visible in the easy monetary policy adopted by the US and Europe and major central banks across the global economy.

What next? Where is gold headed

The current risk assessments are more tilted in favour of risky assets rather than the safe haven assets and the vaccination programmes are creating a ray of hope across the global economy.

However, more stimulus measures from the US and the $1.9 trillion package that might sooner be released by the US will result in further action in gold prices moving higher.

Whatever may be the circumstances, the broader fundamentals of easy money policy, weak dollar, rising infections will continue to be the push factors for gold prices to turn bright again.

From a one-month perspective, we expect spot gold prices in the international markets to move higher towards the $1,920-mark and the MCX NSE -0.32 % futures might move higher towards the Rs.50,400/10 gms-mark in the same time frame.

Gold Price per gram forecast for tomorrow, this week and month

Daily gold price (January 25): Forecast and updates
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