On Wednesday, January 7, gold price commenced trading on a subdued note, as investors took the opportunity to realize profits following a rise to one-week highs the previous day. On the Multi Commodity Exchange, gold February futures were trading at Rs 1,38,834 per 10 grams, down Rs 250 or 0.18%, while silver March futures slipped 0.4% or Rs 950 to Rs 2,57,861 per kilogram. In the prior session, both metals experienced gains driven by safe-haven demand in response to escalating geopolitical tensions and increased global uncertainty. As investor sentiment shifts towards a more defensive posture, bullion persists in garnering support as a safeguard against market volatility.
In the international market, spot gold experienced a decline of 0.6%, settling at $4,469.04 per ounce, following a substantial rally of nearly 3% in the preceding session. Attention is now focused on the forthcoming US payroll data for insights regarding the Federal Reserve’s interest rate path. The US President’s stern warnings to Colombia, Cuba, and Mexico concerning illicit drug shipments have intensified market unease. In the wake of Maduro’s capture, Swiss authorities have reportedly initiated a freeze on his assets, a decision that analysts suggest may intensify safe-haven flows into gold and silver.
“Risk sentiment continues to favor a higher allocation towards gold amid renewed geopolitical tensions, with reports of the US crossing the Venezuela border and heightened alerts involving its leadership contributing to global uncertainty. These developments are sustaining a robust demand for safe-haven assets. Gold is anticipated to exhibit volatility with an upward bias, projected to trade within a range of Rs 1,37,000 to Rs 1,42,000 in the short term,” according to Jateen Trivedi.