Gold price today: Rate jumps 9% to hit record high on MCX; is it the right time to buy?

Gold price today: Gold rates on the MCX rose sharply in the morning session on Thursday, January 29, supported by strong retail demand, the dollar's weakness, and geopolitical uncertainties.

The US Fed on January 28 maintained the status quo on policy rates, but markets continue to discount two rate cuts later this year.

MCX gold February futures jumped by over ₹14,850, or nearly 9%, to hit the record high of ₹1,80,779 per 10 grams mark.

MCX silver March futures soared by more than ₹23,100, or 6%, to a record high of ₹4,08,487 per kg.

International gold prices hit a record high, inching closer to $5,600 per troy ounce, while silver came closer to the $120 mark on increased geopolitical uncertainties and the dollar's fall against its peers.

The US Federal Open Market Committee (FOMC) decided to keep the target range for the federal funds rate at 3.5% to 3.75%.

The Fed's decision appears to have had little impact on gold prices, as the central bank's move was largely discounted by market participants.

The focus is on the evolving situation between the US and Iran. Tensions between the two countries have escalated after Iran warned it would strongly respond to any US attack after US President Donald Trump said time was running out for Tehran to negotiate over its nuclear programme and avoid possible American military action.

"Gold and silver safe-haven buying is strong amid heightened global uncertainty. The U.S. Fed kept interest rates unchanged in the monetary policy meetings and hinted that there is no possibility of rate hikes. The Fed Chairman said the economy is in good shape, inflation is under control, but tariff-driven inflation persists and could stabilise soon, and given room for monetary easing. His comments supported precious metal prices," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

The dollar index plunged by more than 0.30%, making the greenback-backed yellow metal cheaper for overseas buyers.

Right time to buy gold?

Jain expects gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, ahead of the US jobless claims data and geopolitical tensions.

He suggests buying gold until it holds ₹1,64,400 per 10 grams level on a closing basis for the targets of ₹1,70,000 and ₹1,75,000, and buying silver until it holds ₹3,64,000 on a closing basis for the targets of ₹4,00,000 and ₹4,10,000.

According to Jain, gold has support at $5,220 and $5,140, while resistance is at $5,500 and $5,650 per troy ounce, and silver has support at $110 and $106.60, while resistance is at $118 and $123 per troy ounce in today’s session.

On the MCX, Jain said gold has support at ₹1,64,000 and ₹1,61,600, and resistance at ₹1,70,000 and ₹1,75,000, while silver has support at ₹3,74,000 and ₹3,64,800, and resistance at ₹4,00,000 and ₹4,14,000.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $5,340 and $5,220, while resistance is at $5,525 and $5,600. Silver has support at $112.10 and $108.75, while resistance is at $118.15 and $122.

In INR, gold has support at ₹1,63,050 and ₹1,60,310, while resistance is at ₹1,70,850 and ₹1,73,950. Silver has support at ₹3,80,810 and ₹3,74,170, while resistance is at ₹3,91,810 and ₹3,98,470, said Kalantri.

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold February futures may remain strong as the undertone in global markets is strongly upward.

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.