Gold price today: The rates of gold and silver saw strong gains in the morning trade on the MCX on Wednesday, February 4, on strong spot demand and the dollar's weakness.
MCX gold April contracts rose by nearly ₹7,000, or 4.5%, to ₹1,60,755 per 10 grams, while MCX silver March contracts jumped by more than ₹16,000, or 6%, to ₹2,84,094 per kg.
International gold prices also rose over 2% on Wednesday, supported by a softer dollar.
The dollar index eased on profit-taking after recent gains driven by healthy US macro data and the US Fed's status quo on interest rates. A weaker dollar makes greenback-backed gold cheaper for overseas buyers.
"Gold and silver prices rebounded from their recent lows, climbing back above $5,000 and $87, respectively, after two consecutive sessions of sharp selling. Markets have largely absorbed the nomination of Kevin Warsh as the new Fed Chairman," Rahul Kalantri, VP of commodities at Mehta Equities, pointed out.
"Safe-haven buying strengthened amid rising geopolitical tensions, after U.S. forces shot down an Iranian drone, although diplomatic talks are still expected to continue. Support also came from a partial U.S. government shutdown and profit-taking in the dollar index from its highs," said Kalantri.
The US House of Representatives passed a government funding package, effectively ending a brief federal government shutdown that began on Saturday (January 31).
Kalantri said gold has support at $4,855 and $4,775, while resistance is at $5,060 and $5,150. Silver has support at $79.80 and $74.75, while resistance is at $89.15 and $94.80.
In INR, gold has support at ₹1,47,650 and ₹1,45,310 while resistance is at ₹1,52,850 and ₹1,55,950. Silver has support at ₹2,59,810 and ₹2,52,170, while resistance is at ₹2,74,810 and ₹2,80,470, Kalantri said.
Is it the right time to buy gold?
Experts remain positive about gold and silver for the medium to long term and recommend buying on dips.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, pointed out that global factors such as expectations of a dovish US Federal Reserve, elevated geopolitical risks, fiscal stress in major economies, and sustained central-bank and ETF buying continue to support precious metals.
"Gold is likely to remain range-bound with a positive bias, while silver may see higher volatility but benefit from strong industrial demand, keeping medium- to long-term trends intact," said Kothari.
Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold around ₹1,54,000 and ₹1,51,500 with a stop loss below ₹1,47,700 for the target of ₹1,55,500 and ₹1,60,000, and buying silver around ₹2,70,000 and ₹2,64,000 with a stop loss below ₹2,55,500 for the target of ₹2,82,000 and ₹2,90,000.
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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.
