Gold price today: Rates jump 3% to breach ₹1.62 lakh per 10 gram on MCX; is it the right time to buy gold?

Gold price today: Gold rates jumped 3% on the MCX in morning trade on Wednesday, January 28, to breach the ₹1.62 lakh per 10 grams mark for the first time amid persisting geopolitical tensions, the dollar's weakness, and strong spot demand. MCX gold February futures jumped by more than ₹4,700, or 3% to a record high of ₹1,62,429 per 10 grams, while MCX silver March futures jumped about ₹21,400, or 6%, to a record high of ₹3,77,655 per kg.

The dollar index declined by about 0.30%, making the greenback-backed yellow metal cheaper for overseas buyers. As Reuters reported, the dollar dropped to a four-year low against a basket of currencies on Tuesday.

Increasing uncertainties over US trade policies and concerns about their impact on global economic growth are driving gold prices higher. US President Donald Trump's tariff threat against South Korea and Canada has raised geoeconomic uncertainties. The road ahead for an India-US trade deal remains hazy.

Apart from global factors, investors also await the US Federal Reserve’s policy outcome on January 28, following data showing that US consumer confidence slumped to its lowest level in more than 11 and a half years, according to Reuters, in January.

Experts expect the US jobs market to weaken further, which may push the Fed to cut rates.

Market participants expect the US Fed to hold policy rates steady in January but to cut rates at least twice this year, probably in the second half.

According to Jigar Trivedi, Senior Research Analyst for IndusInd Securities, while interest rates may remain unchanged after the January policy meeting, markets will keenly observe Chair Jerome Powell’s remarks amid mounting pressure from Trump to lower rates.

Moreover, Trump has indicated that US interest rates will decline after the new Fed Chair, soon to be picked by him, takes over.

Is it the right time to buy gold?

Experts suggest buying gold on dips, as they expect the rally to continue amid persisting global uncertainties.

"We suggest buying gold on every dip until it holds ₹1,56,000 on a closing basis for the target of ₹1,65,000 and buying silver until it holds ₹3,44,000 on a closing basis for the target of ₹3,70,000 and ₹3,84,000," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

While long-term investors can continue buying gold on dips, experts say short-term and intraday traders should keep key support and resistance levels in mind.

According to Jain, gold has support at $5,084 and $5,055, while resistance is at $5,174 and $5,220 per troy ounce. Silver has support at $102.40 and $98, while resistance is at $112 and 118 per troy ounce in today’s session.

On the MCX, gold has support at ₹1,56,600 and ₹1,55,000 and resistance is at ₹1,59,800 and ₹1,62,000, while silver has support at ₹3,50,000 and ₹3,44,000 and resistance is at ₹3,65,000 and ₹3,78,000, said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, sees support for gold at $5,155 and $5,105, while resistance is at $5,225 and $5,270. He said silver has support at $108.10 and $104.75, while resistance is at $114.15 and $116.

In INR, Kalantri said gold has support at ₹1,55,050 and ₹1,53,310, while resistance is at ₹1,59,850 and ₹1,61,950. Silver has support at ₹3,44,810 and ₹3,37,170, while resistance is at ₹3,61,810 and ₹3,65,470.

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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.