Gold prices surged to fresh highs in the domestic futures market on Friday, January 23, as rising geopolitical uncertainty, expectations of US interest rate cuts, and a softer dollar pushed investors toward safe-haven assets.
On the Multi Commodity Exchange (MCX), gold February futures jumped nearly 2%, to hit a new all-time high of Rs. 1,59,226 per 10 grams during early trade. Silver March futures outperformed, surging almost 4%, to touch a fresh record high of Rs. 3,39,927 per kg.
The price of 24K gold increased by Rs. 540 by 10:10 AM. 10 grams of the precious metal traded at Rs. 1,59,710.
The price of 22K gold also increased by Rs. 495, with ten grams of the yellow metal selling at Rs. 1,46,400.
The price of ten grams of 24K gold stood at Rs. 1,59,710 in Mumbai and Kolkata, and Rs. 1,59,820 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,59,860.
The US gold futures for February delivery climbed over 1% to reach a record $4,969.69 per troy ounce. The gold price increase was backed by the US dollar index dropping to its lowest point in over two weeks, making dollar-based gold cheaper for investors outside the United States.
Safe-haven demand continues to increase amid ongoing geopolitical developments as a key factor. The recent remarks by US President Donald Trump regarding Greenland have temporarily eased retaliation from European countries, but uncertainty remains over the long-term implications of US foreign policy moves.
Investors are shifting their attention to the upcoming US Federal Reserve policy meeting scheduled for next week.
Traders anticipate that interest rates will remain stable until the upcoming quarter; they expect two quarter-point rate reduction in the second part of the year.
Lower interest rate expectations create reduced opportunity costs for holding non-yielding assets like gold, leading to increased asset prices.
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Internationally, gold has support around $4,870-$4,830, while resistance lies near the $5,000 mark.
On MCX, gold has key support around Rs. 1,54,400-Rs. 1,52,800, with resistance projected between Rs. 1,58,500 and Rs. 1,62,000.
Silver, meanwhile, is supported near Rs. 3,24,000, with upside resistance around Rs. 3,35,000-Rs. 3,44,000.