Gold price today: Gold rate rose in the domestic futures market on Friday, January 20, amid rising tensions between the US and Iran. However, the dollar’s rise against its peers capped gains for the yellow metal.
MCX gold April futures were 0.20% up at ₹1,55,110 per 10 grams around 9:45 am, while MCX silver March contracts were 0.65% up at ₹2,42,974 per kg at that time.
The dollar index hit the 98 mark, rising for the fourth consecutive session and gaining more than a per cent this week. The dollar index is looking set to clock its strongest weekly performance since early October, supported by robust US economic data and hawkish signals from the US Federal Reserve.
A stronger dollar is negative for gold as it makes greenback-backed yellow metal expensive for overseas buyers and creates demand fatigue.
On the geopolitical front, tensions between the US and Iran are escalating, with some media reports claiming that the US may attack Iran over the weekend, though no final decision has been made.
Geopolitical risks are a major positive for gold prices.
Meanwhile, expectations for US Fed rate cuts in the near future are weakening. Thursday’s weekly jobless claims data fell to a five-week low, indicating the labour market is stabilising.
According to CME’s FedWatch Tool, market participants see a 50% possibility the Fed will cut rates at its June policy meeting.
The minutes of the January FOMC meeting showed policymakers are divided over the next move on interest rates, with some favouring hikes if inflation remains elevated.
Investors are now focusing on advance estimates of fourth-quarter GDP figures and the PCE price index report, the Fed’s preferred inflation gauge, on Friday, for cues on the central bank’s near-term interest rate trajectory.
Gold and silver: Key levels to watch
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold April futures may stay elevated around ₹1,56,000 per 10 grams, and ₹1,53,500 per 10 grams may act as a support today.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and US-Iran tensions.
Jain said gold has support at $4,964 and $4,915, while resistance is at $5,055 and $5,122 per troy ounce, and silver has support at $74.40 and $72, while resistance is at $80 and $82.40 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,53,150 and ₹1,52,200, and resistance at ₹1,55,800 and ₹1,57,500, while silver has support at ₹2,36,600 and ₹2,31,000, and resistance at ₹2,45,500 and ₹2,51,000.
“We suggest buying gold on dips around ₹1,53,300 with a stop loss below ₹1,52,000 for the target of ₹1,55,500 and ₹1,56,400,” said Jain.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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