2 days ago
Gold prices held steady on Tuesday, January 28, with spot gold trading at $2,740.11 per ounce. Investors are awaiting the US Federal Reserve's policy meeting this week, analysing potential impacts from President Donald Trump's policies.
Index Fund Corner
Sponsored
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | -- | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
In India, gold prices saw slight drops on Tuesday.
The price of 22-carat gold (10 grams) dropped by ₹300 to ₹75,100 from ₹75,400 on Monday (January 27).
In contrast, 24-carat gold remained at ₹8,193 per gram, as per Goodreturns data.
Factors behind current gold prices
Market fluctuations are largely driven by anticipation of the Fed's next move.
The central bank is expected to keep interest rates unchanged on Wednesday (January 29). This would mark the first pause in its rate-cutting cycle that began in September 2024.
However, Trump's statements have added uncertainty, with the president pushing for further rate cuts.
“Lower rates generally benefit gold, as zero-yield bullion becomes more attractive in such environments,” said Tim Waterer, Chief Market Analyst at KCM Trade.
He predicts a potential surge to $2,800 per ounce if the Fed signals a future rate cut.
In addition, Trump’s policies, especially tariffs, are raising concerns.
The potential for inflation and trade tensions could boost gold demand as a safe-haven investment.
With gold's solid performance in January and last year’s 27% rally, the outlook remains strong.
Should you buy gold now?
Gold's price stability and upward potential indicate that it might be a good investment, especially if investors are seeking a safe haven from economic uncertainty.
According to Renisha Chainani, Head of Research at Augmont, gold is on track for its best start to the year since 2023, testing the upper range of $2,790 per ounce (~₹80,300 per 10 grams). The market could continue to benefit from inflationary pressures, especially with the US focusing on "America First" policies.
"If prices breach the $2,800 per ounce level, the next targets could be $2,850 per ounce and even $2,900 per ounce (~₹81,600 to ₹82,800 per 10 grams)," Chainani said.
For those looking for long-term investments, gold could be an attractive option as the potential for further economic turbulence grows.
