Gold price today: Gold rates dropped in the domestic futures market in the morning session on Monday, January 20, tracking weak global cues. The yellow metal dropped on signs of easing tensions in the Middle East. The focus was on Donald Trump’s inauguration today as investors await clarity on the new government’s policies.
Republican Donald Trump is set to return to the White House as the 47th US President following his inauguration ceremony on Monday, January 20. He is reportedly planning over 200 executive actions on the first day.
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Trump’s trade policies are expected to be relatively expansionary and could lead to higher inflation. As the US Federal Reserve has stated that it will remain data-dependent while deciding the trajectory of interest rates, higher inflation could mark the end of the monetary easing cycle in the US. This may keep the US dollar and bond yields elevated. Therefore, the “Trump factor” remains a key trigger in shaping gold prices.
MCX Gold for February 5 expiry traded 0.16 per cent down at ₹78,900 per 10 grams around 9:25 AM.
On the geopolitical front, Hamas released three Israeli hostages, and Israel released 90 Palestinian prisoners on Sunday, reported Reuters. Easing geopolitical tensions also weighed on gold prices.
Gold tends to gain in times of geopolitical uncertainty and rate cuts.
What should be your strategy for MCX gold?
Experts appear cautious about gold prices ahead of Trump’s swearing-in.
Manoj Kumar Jain of Prithvifinmart Commodity Research suggests staying away from precious metals in today’s session ahead of Trump’s inaugural speech.
Jain expects gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of US President Trump’s inaugural speech.
“Gold has support at $2,734-2,722, while resistance at $2,764-2,780 per troy ounce and silver has support at $30.84-30.50, while resistance is at $31.40-31.74 per troy ounce in today’s session. The MCX Gold has support at ₹78,770-78,440 and resistance at ₹79,300-79,550, while silver has support at ₹91,100-90,450 and resistance at ₹92,200-92,850,” said Jain.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,678-2,660 while resistance at $2,710-2,727. Silver has support at $30.00-29.80 while resistance is at $30.42-30.59. In INR, gold has support at ₹78,820-78,580, while resistance at ₹79,220-79,450. Silver has support at ₹90,800-90,270 while resistance at ₹93,650-94,280, Kalantri said.
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