Written by Alisha Fernandes || Allycaral
Gold prices soared to record levels on the Multi Commodity Exchange (MCX) on Thursday, January 29, driven by robust retail demand, a weakening US dollar, and heightened geopolitical uncertainty. The rally comes even as the US Federal Reserve maintained its policy rates, with markets continuing to price in possible rate cuts later this year.
MCX gold February futures surged by over ₹14,850, or nearly 9%, to touch an all-time high of ₹1,80,779 per 10 grams. Silver prices followed suit, with MCX silver March futures jumping more than ₹23,100, or 6%, to a record ₹4,08,487 per kg.
In the international market, gold prices climbed closer to $5,600 per troy ounce, while silver approached the $120 mark, supported by increased safe-haven buying. The dollar index slipped more than 0.30%, making precious metals cheaper for overseas buyers and further boosting demand.
The US Federal Open Market Committee (FOMC) on January 28 kept the federal funds rate unchanged at 3.5%–3.75%, a decision that was largely anticipated by the markets. Analysts noted that the Fed’s stance had limited impact on gold prices, as geopolitical developments — particularly rising tensions between the US and Iran — took centre stage.
Market expert Manoj Kumar Jain of Prithvifinmart Commodity Research said safe-haven buying remains strong amid global uncertainty. He noted that while the Fed signalled no immediate rate hikes and indicated room for future monetary easing, tariff-driven inflation continues to persist, lending support to precious metal prices.
On whether this is the right time to buy gold, Jain expects continued volatility in the near term, influenced by movements in the dollar index, upcoming US jobless claims data, and geopolitical developments.
He recommends buying gold as long as it holds the ₹1,64,400 per 10 grams level on a closing basis, with upside targets of ₹1,70,000 and ₹1,75,000. For silver, he suggests buying while prices remain above ₹3,64,000, targeting ₹4,00,000–₹4,10,000.
On the global front, Jain highlighted key technical levels — gold has support at $5,220 and $5,140, with resistance at $5,500 and $5,650 per troy ounce. Silver support stands at $110 and $106.60, while resistance lies at $118 and $123.
With markets navigating uncertainty on multiple fronts, gold and silver are likely to remain volatile but well-supported in the near term.
