Global Factors Driving Price Movements
The dollar index, measuring the greenback against major currencies including the yen and euro, rose 0.24% to 99.31, briefly touching 99.49 the highest since early December. Analysts noted that a stronger dollar reduces safe-haven demand for precious metals. US President Donald Trump’s softened stance on Iran further reduced geopolitical risk premiums that had previously boosted gold and silver prices.
Market Insights and Predictions
Experts suggest that silver is currently outperforming gold. Amit Goel, Chief Global Strategist at Pace 360, stated that while both metals had been moving together, silver’s rally could continue longer, suggesting gold may top out first. Ponmudi R, CEO of Enrich Money, emphasized silver’s structural bullish trend due to supply deficits and industrial demand, predicting medium-term targets beyond $100 per ounce.
Domestic Market Trends
MCX gold prices are expected to remain volatile within ₹1,41,000–₹1,45,000 per 10 grams, while silver is trading in the ₹2,80,000–₹2,93,000 per kg range. Analysts, including Anuj Gupta of SEBI, highlight key support and resistance levels: gold at ₹1,42,350–₹1,45,670 and silver at ₹2,84,170–₹2,96,470. A breach of these ranges could signal bullish or bearish momentum in the near term.
Upcoming US Fed Meeting Impact
Investors are closely monitoring the US Federal Reserve’s January policy meeting. Strong US economic data has tempered expectations for further interest rate cuts in the first half of 2026. Jateen Trivedi, VP Research Analyst at LKP Securities, stated that gold will remain volatile near ₹1,41,000–₹1,45,000 per 10 grams, while geopolitical flashpoints continue to support safe-haven demand.
Key Technical Levels
Analysts suggest watching COMEX gold at $4,550–$4,650 per ounce and silver at $85–$93 per ounce. In INR, gold support lies at ₹1,40,000–₹1,42,350 and resistance at ₹1,44,350–₹1,45,670. Silver support is at ₹2,84,000–₹2,88,810 and resistance at ₹2,94,000–₹2,96,470. Breach of these levels could trigger further moves in either direction.
