Gold prices commenced the trading session on Tuesday with stability, remaining above the Rs 1.30 lakh threshold. The futures contract for February 5, 2026, initiated at Rs 1,30,333 per 10 grams, reflecting a decrease of Rs 319 or 0.24%. Silver, however, experienced more pronounced profit booking from recent peaks, as the March 5, 2026, futures contract commenced at Rs 1,78,999 per kg, decreasing by Rs 3,031 or 1.67%. Gold prices experienced a slight decline in early Asian trading on Tuesday, retreating from a six-week high reached in the previous session. This movement comes as investors take profits while anticipating comments from the Federal Reserve Chair and significant economic data that may provide insights into potential interest rate cuts. Internationally, spot gold declined by 0.2% to $4,222.93 per ounce, as of 0024, following a peak not seen since October 21 on Monday. U.S. gold futures for December delivery experienced a decline of 0.4%, settling at $4,256.30 per ounce.
According to the reports U.S. rate futures indicate an 88% probability of a rate cut occurring in December. Hassett shares the view of U.S. President Donald Trump that interest rates ought to be reduced. Gold, which does not yield interest, typically exhibits strong performance in environments characterized by low interest rates. Investors are concentrating on significant data this week, notably the November ADP employment figures scheduled for Wednesday and the postponed September Personal Consumption Expenditures Index, which is the Federal Reserve’s favored measure of inflation, set to be released on Friday. The US Dollar Index was hovering near the 99.43 mark, gaining 0.02, or 0.02% on Tuesday.
“With expectations for a rate cut by the Federal Reserve strengthening and U.S. debt levels near historic peaks, demand for safe-haven assets has remained robust. The pace of recovery in gold continues to exceed expectations, even amid emerging hopes for peace between Russia and Ukraine — indicative of robust positioning by global central banks and institutional buyers,” stated Jateen Trivedi.
Trivedi posits that gold could persist in a wider positive range, oscillating between Rs 1,28,000 and Rs 1,34,000. Rahul Kalantri indicated that gold has support levels at Rs 1,29,650-1,28,850, with resistance levels positioned at Rs 1,31,450-1,32,100. Additionally, silver exhibits support levels at Rs 1,80,750-1,79,200, with resistance identified at Rs 1,83,110 and Rs 1,84,300.