Market Ascent Explained
The prices of gold and silver saw a significant rise, reaching new peaks on Friday. This upward trend was largely fueled by ongoing geopolitical tensions,
a depreciation of the US dollar, and anticipations of the Federal Reserve lowering interest rates at its upcoming January 27 meeting. These elements combined to create a favorable environment for precious metals, driving investor interest and price appreciation. Further contributing to market uncertainty were comments from US President Donald Trump regarding securing permanent US access to Greenland, although specific details remain unclear, and Denmark maintained its stance on the island's sovereignty. As a safe-haven asset, gold frequently benefits during times of uncertainty, which explains the recent rally. The expectation of lower interest rates can also increase gold's attractiveness, as it reduces the opportunity cost of holding the non-yielding asset.
Price Volatility Factors
Several factors contribute to the ongoing volatility observed in the precious metals market. Fluctuations in the dollar index play a major role, directly impacting gold and silver prices. Moreover, anticipation surrounding the Bank of Japan's policy meeting adds to market uncertainty, creating a dynamic trading environment. Manoj Kumar Jain of Prithvi Finmart highlights that silver may maintain support around $84 per troy ounce, while gold is expected to hold support near $4,555 per troy ounce on a weekly closing basis. These levels serve as crucial reference points for investors, helping them to assess potential entry and exit points in the market. Traders closely watch these key levels, using them to make informed decisions and manage risk effectively.
Expert Price Outlook
Experts anticipate continued volatility in the gold and silver markets. In today's trading session, gold is expected to find support within the range of $4,890–$4,834 and face resistance between $4,955–$5,000 per troy ounce. Silver is projected to have support at $94.60–$92.20 and resistance at $98.40–$100.00 per troy ounce. On the MCX, gold enjoys support at Rs 1,54,400–Rs 1,52,800 and resistance at Rs 1,58,500–Rs 1,62,000, while silver shows support at Rs 3,24,000–Rs 3,16,600 and resistance at Rs 3,35,000–Rs 3,44,000. Based on these levels, experts suggest a buy-on-dip strategy for both gold and silver, especially when the price holds certain thresholds.
Investment Strategies
According to expert recommendations, a buy-on-dip strategy is advisable for gold. This suggests that investors should consider buying gold whenever its price experiences a temporary decrease, as long as it maintains the Rs 1,50,000 closing level. The potential upside target is set between Rs 1,62,000–Rs 1,70,000. Similarly, silver is also recommended as a buy-on-dip opportunity, provided it stays above Rs 3,04,000 on a closing basis, with potential upside targets of Rs 3,35,000–Rs 3,44,000–Rs 3,50,000. These strategies align with the expectation of sustained upward movement in precious metal prices, providing investors with potential opportunities to capitalize on market gains. The key is to patiently wait for the right entry point.
Goldman Sachs' Forecast
Goldman Sachs has adjusted its end-2026 price target for gold, raising it to $5,400 per ounce, up from its earlier forecast of $4,900. This revision reflects a perceived structural shift in demand, driven by increasing interest from private investors and emerging-market central banks. These entities are progressively diversifying their holdings away from traditional reserve assets, which in turn influences the valuation of gold. This demonstrates a growing confidence in gold's long-term prospects. The brokerage's outlook suggests that gold's role as a safe and stable investment option will continue to strengthen.
Historical Market Performance
In the year 2025, gold experienced a remarkable surge, increasing by 64%. This substantial gain underscores gold's ability to serve as a secure store of value during times of economic and political instability. The upward trajectory has continued into 2026, with the precious metal already up by 11%. This ongoing positive momentum indicates sustained investor confidence and suggests that gold remains an attractive investment choice. Investors continue to see value in gold's historical performance, positioning it as an important asset in a diversified investment portfolio. This consistent performance further bolsters its standing in financial markets.
Current Gold Rates
The prices for standard 22-carat gold in Delhi stand at Rs 1,13,272 per 8 grams. The rates for pure 24-carat gold in Delhi are at Rs 1,23,560 per 8 grams. In Hyderabad, standard 22-carat gold is priced at Rs 1,13,152 per 8 grams, while 24-carat gold is at Rs 1,23,440 per 8 grams. Similarly, in Mumbai, standard 22-carat gold is priced at Rs 1,13,152 per 8 grams, and 24-carat gold is priced at Rs 1,23,440 per 8 grams. In Chennai, the prices for standard 22-carat gold are at Rs 1,13,592 per 8 grams, and pure 24-carat gold is at Rs 1,23,920 per 8 grams. These prices reflect the current market values and provide a snapshot of gold's valuation across different major cities.
Silver Price Update
Silver prices have also seen an upward trend, rising by Rs 12,600 per kg. This surge brings the price of silver close to Rs 3.4 lakh. The increase in silver prices underscores the ongoing positive sentiment in the precious metals market, closely following the performance of gold. Silver's performance often mirrors gold, and their movements are frequently connected to similar market dynamics, including geopolitical events, currency fluctuations, and investor confidence. The rise in silver prices thus reflects a broader trend within the market, with potential opportunities for investors seeking diversification. This surge further underscores the need for investors to carefully monitor the market.
