Gold prices saw a slight increase in the domestic futures market on Tuesday morning, bolstered by positive global cues and a dip in the US dollar. However, investor caution remained due to uncertainty surrounding the US Federal Reserve’s interest rate policies and the potential impact of President-elect Donald Trump’s trade strategies.
As of 9:10 AM, MCX Gold for February delivery showed a modest gain of 0.08%, trading at ₹78,228 per 10 grams. This uptick was influenced by gains in international gold markets, which have been supported by a weaker US dollar.
The US dollar faced some profit-taking following a Bloomberg report that suggested Trump’s team was considering gradual increases in tariffs, adding to market uncertainty. Trump’s trade policies, set to unfold after his inauguration on January 20, are expected to significantly impact the US dollar, bonds, and precious metal prices. Investors are also closely monitoring upcoming US economic data, including the Consumer Price Index (CPI) and the Producer Price Index (PPI), due Wednesday, which could provide insight into the Fed’s future interest rate decisions. The US Federal Open Market Committee (FOMC) meeting is scheduled for January 28-29, and several Fed officials are expected to offer economic outlooks this week.
Gold prices typically rise when the US dollar weakens, and interest rates show signs of decline, making the yellow metal an attractive option for investors seeking a safe haven in times of uncertainty.
Experts Share Strategy for MCX Gold Trading
Commodity experts are advising caution ahead of potential volatility in gold prices this week. Manoj Kumar Jain, of Prithvifinmart Commodity Research, recommends waiting for some market stability before taking new long positions in gold and silver. He expects ongoing fluctuations in both the dollar index and the upcoming US inflation data to contribute to market uncertainty.
Jain identified key support and resistance levels for gold and silver, with gold priced between $2,662 and $2,645 on the lower end, and resistance ranging from $2,694 to $2,722 per troy ounce. Silver’s support is seen at $30.00 to $29.74, with resistance between $30.60 and $30.88 per troy ounce.
For MCX Gold, Jain pointed out support levels at ₹77,950-77,660, with resistance between ₹78,440-78,720. Silver, on the other hand, has support at ₹89,800-89,150, with resistance levels at ₹91,200-92,000.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold faces resistance at ₹79,000, while immediate support is at ₹77,750. He emphasized that despite global market uncertainty, gold remains a favored choice for investors seeking safe-haven assets in turbulent times.
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