Gold futures commenced the day with slight gains on Friday, providing a measure of relief following a week characterized by volatility. On the MCX, gold for the February 5 contract was trading at Rs 1,37,805 per 10 grams, reflecting an increase of Rs 63 or 0.05%. Meanwhile, silver for the March 5 contract experienced a rise of Rs 1,131 or 0.46%, reaching Rs 2,44,455 per kg. Gold prices experienced downward pressure on Friday, influenced by a robust US dollar and the continuing rebalancing of indices in the commodities sector. Investor sentiment exhibited a degree of caution in anticipation of the forthcoming US non-farm payrolls data, which may significantly impact the metal’s short-term trajectory.
In global markets, spot gold declined by 0.4% to $4,458.10 per ounce as of 0126, whereas US gold futures for February delivery increased by 0.2% to $4,467.60 per ounce. The US dollar index gained 0.1% to hover around the 98.95 mark during early Asia trade, limiting bullion’s appeal for foreign currency holders. In domestic markets on Thursday, both gold and silver experienced a decline in their closing prices. MCX Gold February futures concluded at Rs 1,37,742 per 10 grams, reflecting a decline of 0.19%, whereas Silver March futures experienced a decrease of 2.91%, settling at Rs 2,43,324 per kilogram. The decline in precious metals was a consequence of significant volatility induced by global events, notably the yearly rebalancing of Bloomberg’s commodity index.
The proposal by the US President to impose 500% tariffs on BRICS nations for importing Russian crude oil has contributed to market jitters, leading to panic selling across global financial markets. Gold, silver, and other base metals experienced significant intraday declines before showing signs of stabilization. In light of the prevailing volatility, it is plausible that demand for safe-haven assets will persist in bolstering the precious metals market. Manoj Kumar Jain notes that the Chinese central bank has increased its gold reserves by 42 metric tonnes since November 2024, continuing its streak as a net buyer for the 14th consecutive month in the context of global uncertainty and persistent de-dollarisation trends.
Jain observed that price volatility in bullion continues to be high, while pinpointing critical support levels: gold at $4,240 per troy ounce and silver at $65. On MCX, gold is anticipated to encounter support in the range of Rs 1,37,000 to Rs 1,36,200, while resistance is projected between Rs 1,38,400 and Rs 1,39,100. In the case of silver, support levels are identified between Rs 2,39,500 and Rs 2,34,400, while resistance is observed in the range of Rs 2,48,000 to Rs 2,51,500. He advised traders to exercise patience for price stability prior to establishing new positions, underscoring that the long-term fundamentals for bullion remain robust despite short-term fluctuations.