Gold price today: Rates at record high on MCX as geopolitical risks, weaker dollar drive safe-haven demand

Gold price today: Gold rates jumped to a record high in the domestic futures market on Friday, January 23, morning, as heightened geopolitical and geoeconomic risks and weakness in the US dollar boosted demand for safe-haven assets.

MCX gold February futures jumped by nearly ₹2,900, or almost 2%, to a fresh record high of ₹1,59,226 per 10 grams. MCX silver March futures surged by more than ₹12,600, or almost 4%, to a fresh record high of ₹3,39,927 per kg.

International gold prices also jumped to record highs. U.S. gold futures for February hit $4,969.69 per troy ounce, rising by more than 1%.

The evolving geopolitical situation is sending mixed signals, creating an environment of uncertainty that is positive for safe-haven asset gold.

According to media reports, US President Donald Trump's softer tone on Greenland averted retaliatory measures from European countries, but they have warned that they will act if the US President threatens them again.

According to news agency Reuters, "Trump said on Thursday he had secured total and permanent U.S. access to Greenland in a deal with NATO."

The Reuters report further added that the “details of any agreement were unclear. Greenland's Prime Minister Jens-Frederik Nielsen said he was still in the dark on many aspects.”

Apart from the global uncertainties, the dollar's weakness is also supporting gold prices. The dollar index dropped to an over two-week low on Friday, making the yellow metal cheaper for overseas buyers.

The focus is also on the US Federal Reserve's policy decision next week. Markets expect a pause in interest rates this time. However, the Fed is widely expected to deliver two 25-basis-point rate cuts in the second half of the year. Anticipation of Fed rate cuts remains a key positive for gold prices.

Gold and silver: Key levels to watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,890 and $4,834, while resistance is at $4,955 and $5,000 per troy ounce, and silver has support at $94.60 and $92.20, while resistance is at $98.40 and $100 per troy ounce in today’s session.

Jain said on the MCX, gold has support at ₹1,54,400 and ₹1,52,800, and resistance is at ₹1,58,500 and ₹1,62,000, while silver has support at ₹3,24,000 and ₹3,16,600 and resistance is at ₹3,35,000 and ₹3,44,000.

"We suggest buying gold on every dip until it holds ₹1,50,000 levels on a closing basis for the target of ₹1,62,000 and ₹1,70,000, and buying silver on every dip until it holds ₹3,04,000 on a closing basis for the target of ₹3,35,000, ₹3,44,000, and ₹3,50,000," said Jain.

"Gold has support at $4,870 and $4,815, while resistance is at $4,965 and $5,020. Silver has support at $95.10 and $92.75, while resistance is at $98.65 and $100.30. In INR, gold has support at ₹1,54,650 and ₹1,52,310, while resistance is at ₹1,58,850 and ₹1,60,150. Silver has support at ₹3,20,810 and ₹3,10,170, while resistance is at ₹3,31,810 and ₹3,37,470," said Rahul Kalantri, VP of commodities at Mehta Equities.

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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.