On Wednesday, December 31, gold prices experienced a decline, as MCX gold futures decreased by Rs 1,140, representing a 0.8% drop from the prior closing figure of Rs 1,36,666, reaching an intraday low of Rs 1,35,526. The decline ensued after a phase of pronounced volatility instigated by escalated geopolitical tensions, which had substantially elevated prices earlier in the week. On the COMEX, gold futures traded within a range of $4,350 to $4,360 per ounce, reflecting a modest decline from Tuesday’s closing price of approximately $4,386.
Gold and silver experienced a robust rebound on Tuesday, recovering from intraday lows as safe-haven demand saw a resurgence. The prevailing sentiment was influenced by obstacles in the Russia–Ukraine peace negotiations, U.S. military actions targeting Venezuelan dockyards, and Chinese naval exercises occurring in the context of escalating tensions between the U.S. and Taiwan. Rahul Kalantri noted that the rally faced limitations after the Federal Reserve’s policy meeting minutes revealed diminished expectations for aggressive rate cuts in 2026.
Amid ongoing global uncertainties and shifting monetary policy expectations, the precious metals market is poised in a delicate equilibrium as we approach the new year. Currently, price action is likely to stay within a defined range, as traders remain vigilant for any changes in geopolitical and central bank narratives. As noted by Ponmudi R prices are maintaining adherence to the long-term trendline, with immediate support identified near the 20-day EMA at $4,351. Despite the prevailing short-term price pressures, the overarching market structure continues to exhibit bullish characteristics.
A sustained breakout above 4,400 could open the door to 4,500 levels, he added, though downside support remains firm at 4,300 to 4,250. On the domestic front, MCX gold futures exhibited consolidation within the Rs 1,35,500 to Rs 1,35,700 range. Enrich Money pointed out that a resurgence above Rs 1,36,500 could rekindle momentum towards Rs 1,38,000 to Rs 1,40,000, with robust support at Rs 1,34,000 to Rs 1,33,000. Technical indicators still support buy-on-dip strategies, although short-term fluctuations are highly responsive to global events.