Gold price today: Gold rates dropped in the domestic futures market on Thursday, January 22, in the morning, amid profit booking, following signs of easing geopolitical tensions and the dollar's rise against its peers.
MCX gold February futures were 0.46% down at ₹1,52,158 per 10 grams around 9:35 am. MCX silver March futures, however, were 0.25% up at ₹3,19,301 per kg at that time, supported by healthy spot market demand.
The yellow metal declined in international markets also after US President Donald Trump softened his tone on Greenland. US gold futures for February dropped by 1%.
Trump on Wednesday backed away from his threat to impose tariffs on European countries over their position on Greenland. He said he had reached the outlines of an agreement with NATO regarding the island’s future.
He stated that he had met NATO Secretary General Mark Rutte and chalked out a 'framework for a future deal'.
Meanwhile, Trump's soft tones on tariffs stabilised the US dollar. The dollar index rose to 98.81, making gold slightly expensive for overseas buyers.
Apart from geopolitical developments, traders and investors are focusing on the November Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, and weekly jobless claims, both due later in the day. Both will influence expectations about the US Fed's interest rate trajectory.
Most market participants expect the US Federal Reserve to maintain interest rates at its January 27-28 meeting.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted that gold and silver prices are witnessing some profit-taking amid risk aversion in global financial markets following Trump's comments.
However, Jain added that global uncertainty due to U.S. trade tariffs and the Western policies of the " sell America narrative could continue to support safe-haven buying for precious metals.
"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index; ahead of the U.S. jobless claims data and geopolitical tensions," said Jain.
According to Jain, gold has support at $4,785 and $4,740, while resistance is at $4,855 and $4,890 per troy ounce, and silver has support at $89.80 and $87.40, while resistance is at $94.60 and $96.80 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,50,500 and ₹1,47,700, and resistance at ₹1,55,000 and ₹1,58,000, while silver has support at ₹3,14,000 and ₹3,06,000, and resistance at ₹3,24,000 and ₹3,28,000.
"We suggest staying away from taking fresh positions in both precious metals in today's session and waiting for some stability in the markets," said Jain.
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, MCX gold February futures may decline to ₹1,51,500 per 10 grams as the undertone is mildly weak in the world markets.
Trivedi believes MCX silver March futures may decline to ₹3,15,000 per kg in case of a persistent correction.
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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.
