Gold prices witnessed a sharp rally on Wednesday, January 21, as investors rushed to safe-haven assets amid rising geopolitical and trade uncertainty. On the Multi Commodity Exchange (MCX), gold February futures jumped 4.34% to touch a record high of Rs. 1,57,101 per 10 grams as of 10:00 AM. Silver March futures climbed 2.04% to Rs. 3,30,273 per kg, continuing its upward momentum.
The price of 24K gold increased by Rs. 502 by 10:00 AM. 10 grams of the precious metal traded at Rs. 1,54,800.
The price of 22K gold also increased by Rs. 460, with ten grams of the yellow metal selling at Rs. 1,41,900.
The price of ten grams of 24K gold stood at Rs. 1,54,800 in Mumbai and Kolkata, and Rs. 1,55,460 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,54,950.
US gold futures surged close to 2%, trading around $4,847 per troy ounce, while spot gold traded above $4,820, after briefly scaling an intraday high near $4,844.
The rise marks a fresh record for global bullion prices, underlining gold’s role as a preferred hedge during periods of uncertainty.
On the other hand, spot silver saw some profit taking after the recent rally, trading lower around $93.60 an ounce. However, it remains near the all-time high.
The rally in prices of gold and silver primarily stemmed from the fears regarding the US and the EU trade dispute.
The situation regarding tariffs and the political remarks made on Greenland have resulted in the rise of global economic instability and weakening the diplomatic ties.
The possibility of retaliatory measures from Europe against the US has made investors unsettled and led them to the safety of gold and silver.
The overall strength of gold was also supported by the weakened US dollar amid continuous selling pressure, attracting more investors to dollar-denominated commodities.
The US 10-year bond yields hit four-month highs due to selling in the Japanese bond, and also supported both precious metals. Weakness in the rupee also supported gold and silver prices.
Internationally, gold has support at $4,695 and $4,625 while resistance is at $4,820 and $4,860. Silver has support at $92.10 and $89.75, while resistance is at $95.95 and $97.40.
On the MCX, gold has key support at Rs. 1,48,800 and Rs. 1,46,600, with resistance placed at Rs. 1,52,500-Rs. 1,55,000.
While silver has support at Rs. 3,16,000 and Rs. 3,08,500 and resistance at Rs. 3,30,810 and Rs. 3,35,470.
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