Gold futures commenced the trading session on the Multi Commodity Exchange with notable declines on Friday, as both metals experienced downward movement. This shift can be attributed to investors capitalizing on profits following a robust rally earlier in the week, which had propelled prices to unprecedented levels. MCX Gold futures due February 5, 2026, experienced a decline of Rs 10,000, reflecting a 6% decrease, bringing the price to Rs 1,61,000 per 10 grams. Meanwhile, silver futures for March 5, 2026, delivery declined by Rs 24,000 or 6% to Rs 3,75,900 per kg. In the international market, Gold prices eased on Friday as a firmer dollar weighed on the metal. However, prices remained on track for their strongest monthly gain since 1980, as investors continued to seek safety amid lingering geopolitical and economic uncertainties. Spot gold declined by 0.9% to $5,346.42 per ounce as of 0124, following a peak of $5,594.82 in the prior session. Despite the recent pullback, gold has experienced a remarkable increase of over 24% in January, achieving its sixth consecutive month of gains and recording its largest monthly rise since January 1980.
Silver experienced a slight decline, with spot prices decreasing by 0.2% to $115.83 per ounce following a peak of $121.64 on Thursday. The metal has experienced a remarkable rally of 62% this month, positioning it for its most exceptional monthly performance to date. Meanwhile, the dollar index experienced a modest increase, bolstered in part by the Federal Reserve’s recent decision to maintain interest rates at their current level, although it is still on track for a second consecutive weekly decline. Gold and silver rates are currently experiencing notable movements, with gold maintaining a position close to the Rs 1.8 lakh threshold following a significant increase, while silver has surpassed the Rs 4 lakh per kg mark. This rally can be attributed to several key factors influencing the market. Manoj Kumar Jain noted that geopolitical tensions and robust safe-haven buying persist in bolstering precious metal prices, with escalating US-Iran tensions expected to further drive momentum for gold and silver.
He observed that both metals are experiencing significant volatility; however, silver is anticipated to sustain support at $98 per troy ounce, whereas gold may uphold support at $4,980 per troy ounce on a closing basis this week. Jain noted that prices are expected to exhibit volatility in today’s session, influenced by fluctuations in the dollar index, the impending Indian Union Budget, and persistent geopolitical concerns. For the day, gold exhibits support in the $5,220–5,110 range and resistance at $5,480–5,555 per troy ounce, while silver shows support between $110.00–106.60 and resistance at $118.00–123.00 per troy ounce.
On the MCX, Jain identifies support for gold within the Rs 1,65,500–1,61,100 range, while resistance is noted at Rs 1,74,400–1,80,000. Silver is anticipated to find support within the range of Rs 3,88,000 to Rs 3,74,000, while resistance is projected between Rs 4,10,000 and Rs 4,22,000. He suggests acquiring gold during price corrections within the range of Rs 1,68,000–1,64,000, implementing a stop loss beneath Rs 1,61,100, and aiming for upside targets of Rs 1,72,800–1,75,000.