Gold Turns Volatile as Easing Geopolitical Tensions and Key US Data Shape Market Sentiment on MCX

Advertisment

Gold price today moved lower in early trade on Thursday, January 22, as traders booked profits after the recent rise. A stronger US dollar and signs of easing global tensions reduced demand for gold as a safe option. These factors pulled prices down in the domestic futures market.

On the Multi Commodity Exchange, MCX gold February futures slipped 0.46% to Rs. 1,52,158 per 10 grams around 9:35 am. Traders sold gold to lock in gains made during the recent rally. The fall showed a clear shift in short-term market mood.

Silver Prices Stay Firm Despite Gold Weakness


At the same time, silver prices stayed firm. MCX silver March futures rose 0.25% to Rs. 3,19,301 per kg. Strong demand in the spot market supported silver even as gold prices weakened. Industrial demand also helped silver hold higher levels.

Advertisment

The weakness in gold price today followed a drop in global markets as well. International gold prices fell after signs of easing geopolitical tensions. US President Donald Trump softened his stance on trade threats linked to Greenland. He spoke about progress toward a future agreement with NATO. These comments reduced fear in global markets and lowered the need for safe-haven buying.

Strong Dollar Adds Pressure on Gold Prices


Calmer global cues also supported the US currency. The dollar index climbed to around 98.81. A strong dollar makes gold costlier for buyers using other currencies. This often puts pressure on gold prices, which added to the fall seen in MCX gold rates.

Investors now watch key US data due later in the day. Markets focus on the Personal Consumption Expenditures data and weekly jobless claims. These numbers guide expectations on future US interest rates. Most traders expect the US Federal Reserve to keep rates unchanged at its January meeting.

Advertisment

Expert Views and Key Support Levels


Experts believe that gold price today may stay volatile in the near term. Manoj Kumar Jain of Prithvifinmart Commodity Research said profit booking has emerged in gold and silver after recent gains. He added that uncertainty around US trade policies may still support gold on declines.

Jain shared key price levels for traders. Gold has support near Rs. 1,50,500 and Rs. 1,47,700 on MCX. Resistance stands near Rs. 1,55,000 and Rs. 1,58,000. Silver finds support near Rs. 3,14,000, while resistance lies around Rs. 3,24,000.

Jigar Trivedi of Reliance Securities said MCX gold February futures may slip toward Rs. 1,51,500 per 10 grams if weakness continues in global markets. He also sees a chance of mild correction in silver prices if selling pressure rises.

Advertisment

Gold price today reflects profit booking after strong gains. A firm dollar index and easing geopolitical tensions shape market direction, while silver rates remain supported by steady demand.