Gold prices rose on January 21, with MCX Gold for February 5 expiry trading at Rs 79,023 per 10 grams, up by 0.61 per cent. Meanwhile, silver followed suit, with March contracts trading at Rs 92,165 per kilogram, reflecting a 0.79 per cent increase. A softer US dollar and policy expectations following Donald Trump’s return as US President contributed to the bullish momentum.
Weaker dollar fuels gold’s appeal
Gold prices gained as the US dollar weakened amid speculation over Trump’s tariff strategy. “Gold has support at $2,722-$2,700, while resistance lies at $2,745-$2,764 per troy ounce,” said Manoj Jain of Prithvifinmart Commodity Research. He highlighted that easing safe-haven demand due to improved geopolitical scenarios, like the Israel-Hamas ceasefire and de-escalation talks between Russia and Ukraine, may cap gains.
Outlook for the week
Jain expects volatility in gold and silver prices amid fluctuating dollar index levels and Trump administration announcements. On the domestic front, MCX Gold has strong support at Rs 78,300-78,080, with resistance at Rs 79,000. For silver, support lies at Rs 90,750-90,200, while resistance ranges between Rs 92,000-92,650.
Strategy for bullion investors
Jain recommends a buying strategy for silver, advising entry near Rs 91,100 with a stop loss of Rs 90,450 for a target of Rs 92,400. “Gold’s short-term outlook remains favorable, but sustaining higher levels will depend on continued dollar weakness and further Fed rate cuts,” he added.
Key drivers ahead
Investors should monitor Trump’s policy updates, the dollar index, and the upcoming Bank of Japan interest rate decision on January 24. Technical analysis suggests gold’s breakout above Rs 78,500 indicates a robust near-term trend.
The week ahead promises high volatility, with gold and silver poised to test their key support and resistance levels. Experts advise cautious trading, given the unpredictable geopolitical and economic developments.
