Gold prices saw a strong uptick in early trading on the domestic futures market on Friday, February 7, ahead of the Reserve Bank of India’s (RBI) monetary policy announcement. Market participants are anticipating a 25 basis points (bps) rate cut by the RBI, with Governor Sanjay Malhotra set to reveal the decision at 10:00 AM.
In addition to local factors, positive global cues also contributed to the gains. As of 9:10 AM, the MCX Gold contract for April 4 expiry was up 0.26%, trading at ₹84,661 per 10 grams. International gold prices were also trading near record highs, poised for a sixth consecutive weekly gain, driven by concerns over trade wars.
The market’s focus is now shifting to the RBI’s inflation and growth projections, as well as the upcoming US employment report, which is expected later today and will likely influence market sentiment.
Gold has seen significant price increases this year, with spot gold surging 11% in 2025 thus far. Factors such as the weakening Indian rupee, concerns over a trade war between the US and its partners, and signs of a global economic slowdown have contributed to the rise in gold prices. Typically, gold appreciates during periods of economic and political uncertainty, and when currency values decline.
Gold Prices Set to Rise Further Amid Trade Tensions
The upward momentum in gold prices is expected to continue, largely driven by the trade policies of US President Donald Trump. Major global financial institutions, including Citi, UBS, and Goldman Sachs, believe that gold could surpass the $3,000 mark.
Goldman Sachs has pointed to increased US policy uncertainty and higher investor demand for hedging as reasons for an upward shift, noting that there is an upside risk to their $3,000 price target. Similarly, Citi has raised its near-term gold price target to $3,000 per ounce, up from $2,800. UBS has also revised its 12-month gold forecast, lifting it to $3,000 per ounce.
Key Support and Resistance Levels for Gold and Silver
Experts are forecasting continued volatility in both gold and silver prices today, driven by concerns over the US trade war and the release of US employment data.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver to face fluctuations, with gold having support at $2,858-$2,844 and resistance at $2,888-$2,904 per ounce. Silver’s support is seen at $32.40-$32.10, with resistance at $32.88-$33.20.
For MCX Gold, Jain identified support levels at ₹84,040-83,700 and resistance at ₹84,800-85,100, while silver has support at ₹94,750-94,000 and resistance at ₹96,200-97,000.
Rahul Kalantri, VP of commodities at Mehta Equities, sees support for gold at $2,845-$2,824 and resistance at $2,887-$2,902. In INR, he suggests support for gold at ₹84,170-83,860 and resistance at ₹84,880-85,240. Silver, according to Kalantri, has support at ₹95,050-94,350 and resistance at ₹96,350-97,250.
As traders closely monitor both domestic and global factors, gold and silver are expected to remain sensitive to economic developments in the coming days.
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