Gold price today: Gold rates jumped almost 2% on the MCX in morning trade on Wednesday, January 28, to breach the ₹1.6 lakh per 10 grams mark for the first time amid persisting geopolitical tensions, the dollar’s weakness, and strong spot demand. MCX gold February futures jumped by more than ₹4,700, or 3% to a record high of ₹1,62,429 per 10 grams, while MCX silver March futures jumped about ₹21,400, or 6%, to a record high of ₹3,77,655 per kg.
The dollar index declined by about 0.30%, making the greenback-backed yellow metal cheaper for overseas buyers. As Reuters reported, the dollar dropped to a four-year low against a basket of currencies on Tuesday.
Increasing uncertainties over US trade policies and concerns about their impact on global economic growth are driving gold prices higher. US President Donald Trump’s tariff threat against South Korea and Canada has raised geoeconomic uncertainties. The road ahead for an India-US trade deal remains hazy.
Apart from global factors, investors also await the US Federal Reserve’s policy outcome on January 28, following data showing that US consumer confidence slumped to its lowest level in more than 11 and a half years, according to Reuters, in January.
Experts expect the US jobs market to weaken further, which may push the Fed to cut rates.
Market participants expect the US Fed to hold policy rates steady in January but to cut rates at least twice this year, probably in the second half.
According to Jigar Trivedi, Senior Research Analyst for IndusInd Securities, while interest rates may remain unchanged after the January policy meeting, markets will keenly observe Chair Jerome Powell’s remarks amid mounting pressure from Trump to lower rates.
Furthermore, Trump has indicated that US interest rates will decline after the new Fed Chair, soon to be picked by him, takes over.
Is it the right time to buy gold?
Experts suggest buying gold on dips, as they expect the rally to continue amid persisting global uncertainties.
“We suggest buying gold on every dip until it holds ₹1,56,000 on a closing basis for the target of ₹1,65,000 and buying silver until it holds ₹3,44,000 on a closing basis for the target of ₹3,70,000 and ₹3,84,000,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
