Gold prices rose marginally on Friday and continued to trade close to record levels, supported by ongoing geopolitical tensions and expectations of further interest rate cuts by the US Federal Reserve.
While some safe-haven demand softened after former US President Donald Trump said he had been assured that executions of protesters in Iran had stopped, uncertainty around global events kept investors cautious.
GOLD AND SILVER PRICES ON MCX
On the Multi Commodity Exchange (MCX), gold was trading at Rs 1,43,135 per 10 grams around 4:00 pm on January 16, slightly higher by 0.03%.
Silver was also in the green, trading at Rs 2,92,162 per kg, up 0.20% at the time of writing.
According to market experts, gold continues to show strength in the domestic market, backed by global cues and currency movements.
Ponmudi R, CEO of Enrich Money, said MCX gold remains firmly positioned near recent highs.
“MCX Gold continues to trade near recent highs around Rs 1,42,600, maintaining a clear higher-high, higher-low structure within a rising channel,” he said.
He added that strong domestic participation and supportive rupee levels are helping prices stay elevated. “The recent lifetime high near Rs 1,43,590 highlights strong domestic participation, aided by global strength and supportive rupee dynamics, with USD/INR hovering near 90.40,” Ponmudi noted.
BUYING INTEREST SEEN ON DIPS
Despite the recent pause, buying interest remains strong whenever prices dip.
“The 20-day EMA around Rs 1,38,528 is acting as a reliable support, with every pullback witnessing consistent buying interest,” Ponmudi said.
He believes that a fresh breakout could push prices even higher. “A decisive move above Rs 1,43,000 could extend the rally towards Rs 1,46,000– Rs 1,50,000 in the near term,” he added, suggesting that the overall trend remains bullish.
FED RATE CUT HOPES LEND SUPPORT
Gold prices are also being supported by growing expectations that the US Federal Reserve may cut interest rates multiple times this year.
Recent US inflation data have been softer than expected. November producer price inflation, both headline and core, came in lower, reinforcing signals from the relatively mild consumer inflation data released in December. These readings have strengthened the view that the Fed has enough room to ease policy further.
As markets continue to assess the pace and scale of potential rate cuts, gold is likely to remain sensitive to global economic signals and geopolitical developments.
