Fundamental News and Triggers
Gold and Silver retrace as investors take profits after record high
- Gold and Silver prices declined, weighed down by a firmer US dollar, but remained on track for their strongest monthly gain since 1980, as investors continued to seek safety amid ongoing geopolitical and economic uncertainty.
- Despite the fall, Silver continued to outperform, with prices set to rise over 50% in January, marking the best monthly performance on record and extending its rally to nine consecutive months.
- The broader precious metals rally has been driven by persistent geopolitical and macroeconomic risks, coupled with a sharp depreciation in the US dollar following policy uncertainty in Washington and President Donald Trump’s apparent comfort with a weaker currency.
- Gold demand is broadening across investor classes, ranging from crypto-linked capital flows to central banks, as precious metals remain in focus during periods of high returns and uncertainty.
- Geopolitical risks intensified further after President Trump urged Iran to negotiate a nuclear deal, while Tehran responded with threats of retaliation against the US, Israel, and their allies.
Technical Triggers
- Gold prices can consolidate here in the range of $5150 to $5500 before resuming its uptrend towards $5800–6000 (₹1,87,000–1,95,000). Strong support lies at $5150 (₹1,60,000); a break could trigger profit-booking toward $5000–$4750.
- Silver prices can consolidate here in the range of $108 to 120 before resuming its uptrend towards $125–130 (₹4,30,000–4,50,000). Key support lies at $108 (₹3,60,000), below which prices may retrace to $103–$98.
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