Gold and Silver Prices Surge Amid Market Volatility
Gold Prices Hit New High
Gold prices rose on January 21, with MCX Gold (February 5 expiry) trading at ₹79,023 per 10 grams, marking a 0.61% increase. The rise is attributed to a weaker US dollar and market speculation surrounding Donald Trump’s return as US President.
Silver Follows Suit
Silver saw a similar uptick, with March contracts trading at ₹92,165 per kilogram, reflecting a 0.79% gain.
Market Analysis
Manoj Jain of Prithvifinmart Commodity Research explained that gold prices are finding support at $2,722-$2,700 per troy ounce, with resistance at $2,745-$2,764. The US dollar`s softness and easing geopolitical tensions, such as the Israel-Hamas ceasefire and Russia-Ukraine de-escalation talks, have played a significant role.
Weekly Outlook
- Gold: Strong domestic support at ₹78,300-₹78,080; resistance at ₹79,000.
- Silver: Support at ₹90,750-₹90,200; resistance at ₹92,000-₹92,650.
Volatility is expected due to fluctuations in the dollar index and Trump administration policies.
Investment Strategy
Jain advises silver investors to buy near ₹91,100 with a stop loss at ₹90,450 and a target of ₹92,400. Gold’s short-term outlook remains positive, but further gains depend on sustained dollar weakness and potential Federal Reserve rate cuts.
Key Drivers to Watch
- Trump’s policy announcements
- Dollar index trends
- Bank of Japan’s interest rate decision on January 24
With heightened volatility ahead, investors are encouraged to trade cautiously and closely monitor geopolitical and economic developments.
