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On Monday, January 5, gold prices rose as political tensions around the world drove investors to safe-haven assets. Domestic prices for both gold and silver rose after the news from the US regarding the capture of Venezuela's President Nicolas Maduro over the weekend, which created an atmosphere of uncertainty in the global markets.
On MCX, gold February futures rose about 1.06% to Rs. 1,37,198 per 10 grams around 10:05 am, while MCX silver March futures jumped over 2.67% to Rs. 2,42,626 per kg.
Despite the rally, both metals remain below their record highs of Rs. 1,40,465 per 10 grams for gold and Rs. 2,54,174 per kg for silver.
In global markets, spot gold went up 1.5% to nearly $4,395 per ounce, whereas February gold futures went up more than 2% to $4,418 per troy ounce.
Silver rose more than 4% to nearly $75.9 per ounce, a sign of ongoing interest in speculation and investment following the historic rally.
The precious metals market reacted to the situation, with geopolitical tensions rising and investors putting their money into relatively safe markets during the period of uncertainty.
The peace talks between Russia and Ukraine have been delayed, new security concerns have emerged in Eastern Europe, and there’s turmoil in Venezuela, all of which are reinforcing gold as a hedge.
The expectation of additional interest rate cuts by the US Federal Reserve remains one of the main factors supporting bullion prices.
The lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, a plus for the gold market. In India, domestic gold prices have been supported by a weakening rupee, making imported gold more expensive.
However, gains could face resistance if the US dollar strengthens. Recently, the dollar index hit a two-week high, which may limit upside as a stronger dollar makes gold costlier.
Also Read: Will Gold and Silver Set Fresh Highs in 2026? Outlook and Price Forecasts
In global markets, gold is expected to find support near $4,315-$4,285, while resistance lies around $4,380-$4,445. Silver support is near $69-$70, with resistance at $73-$74 per ounce.
On MCX, gold support is placed near Rs. 1,35,100-Rs. 1,34,400, while resistance is expected around Rs. Rs. 1,38,150. For silver, support is seen near Rs. 2,32,400, with resistance at Rs. 2,45,000.
Gold and silver prices are expected to remain volatile throughout the week due to geopolitical developments and important US macroeconomic data releases, keeping investors' attention on the safe-haven assets.
