A sharp rise in gold prices was seen on MCX in the morning session on Thursday, January 29. MCX Gold February futures rose by nearly ₹10,000 or 6% to hit a record high of ₹1,75,869 per 10 grams. At the same time, silver jumped by 6% to reach a record high of ₹ 4,06,863 per kg. MCX Gold February futures rose by nearly ₹10,000 and MCX Silver March futures by ₹21,500. On the other hand, by 8:02 am in Singapore, gold rose 0.8 per cent to $5,461.98 an ounce, having earlier touched its record high of $5,588.71. Silver rose 0.9 percent to $ 117.119 an ounce. There was a decline in both platinum and palladium. Bloomberg Dollar Spot Index was down 0.2 percent. Fed’s decision has no impact on gold. The US Federal Reserve’s decision has had little impact on gold prices, because this move of the central bank was already anticipated by the market participants.
Why the rise: What experts are saying
US-Iran tension Now the focus is on the changing situation between America and Iran. Tensions between the two countries increased further when Iran warned that it would respond strongly to any US attack. Earlier, US President Donald Trump had said that time is running out for Iran to negotiate on its nuclear program and avoid US military action. According to Manoj Kumar Jain of Prithvi Finmart Commodity Research, “Due to increasing global uncertainty, the buying of safe-haven assets i.e. gold and silver is strong. The US Fed made no change in interest rates and indicated that there is no possibility of increasing the rates. The fall in the dollar supported the dollar index. The recent slide in the Japanese bond market has weakened the dollar for most buyers, according to Bloomberg.
Trump’s statement also set fire
US President Donald Trump said this week he was not worried about the dollar’s slide, which has pushed the world’s main reserve currency to its weakest level in nearly four years. However, Treasury Secretary Scott Besant later said that the administration was in favor of a stronger currency.
These are also the reasons for the flight of gold prices
Recent actions by the White House, such as threats to annex Greenland and talk of military intervention in Venezuela, have also destabilized markets. Trump has promised to raise tariffs on South Korean goods and impose 100 percent tariffs on Canada if Ottawa strikes a trade deal with China.
Is it the right time to buy gold?
Manoj Kumar Jain believes that gold and silver prices may remain volatile in today’s session due to volatility in the dollar index, ahead of US unemployment claims data and geopolitical tensions. He suggests that gold can be bought till it maintains the level of Rs 1,64,400 per 10 grams, with targets of Rs 1,70,000 and Rs 1,75,000. Similarly, silver can be bought till it maintains Rs 3,64,000 (on closing basis), targets of Rs 4,00,000 and Rs 4,10,000 can be kept.