Gold Rate Today: Today i.e. on Tuesday, January 21, the price of gold in the Indian market increased by Rs 100 to Rs 82,100 per 10 grams. On Monday it closed at Rs 82,000 per 10 grams. The price of gold of 99.5% purity has also increased by Rs 100 to Rs 81,700 per 10 grams. However, the price of silver remained stable and it is trading at Rs 93,000 per kg. In futures trade, gold contracts for February delivery on Multi Commodity Exchange (MCX) saw a rise of Rs 426 or 0.54%, taking it to Rs 78,970 per 10 grams.
Also read: Mutual Fund: Top 9 ELSS funds gave returns up to 31% in 5 years, schemes of big fund houses like SBI, HDFC and Parag Parikh included.
Reason for rise: Impact of global trade and interest rates
According to Jatin Trivedi, VP Research Analyst, LKP Securities, “Gold traded sharply on MCX and reached the level of Rs 79,000. The reason for this was former US President Donald Trump’s announcement of increasing tariffs on imports from Mexico and Canada. “, which has increased uncertainty in global trade.” A slight fall was seen in gold prices globally, where Comex Gold Futures was trading at $ 2,730.50, down by $ 18.20 an ounce. Despite this, there will not be a big fall in gold prices due to the possibility of the US Federal Reserve cutting interest rates twice this year.
Also read: Best SIP Return: Top 5 equity schemes of SBI Mutual Fund gave up to 35% return on SIP in 3 years, how much money was made from monthly investment of Rs 5000?
Gold market backwardation
Dr. Renisha Chainani, Research Head, Augmont, said, “In the gold market, futures prices are generally higher than spot prices. However, due to uncertainty over tariffs by the Trump administration, the market has come into a state of backwardation. At present, gold is Spot prices are Rs 150 more than futures prices.” He said, “This situation has arisen due to disruption in the global supply chain. Banks have affected the liquidity of the market by closing their spot and future positions. Due to this, gold lease rates have also reached record levels. This situation is due to COVID “It looks like a supply crisis like the one seen during the COVID-19 pandemic.”
Also read: SIP Vs PPF: What is better for you between SIP and PPF? How much corpus will be generated by investing Rs 12500 every month?
Technical Aspects: Breakout in Gold and Silver
According to Dr. Reneesha Chainani, technical charts are showing that a breakout is visible in gold, if its price remains above $ 2750 (about Rs 79,000), then it can go up to $ 2800 (Rs 80,500). Bullish breakout has also been seen in silver prices. If it sustains above $30.5 (about Rs 92,500), prices may rise to $31.3 (about Rs 94,500) to $32.3 (about Rs 97,500).”
Also read: Multi Cap vs Flexi Cap Return: How much return did the top 5 multi cap and flexi cap funds give? What is the difference between the two and the pros and cons of investment?
Future trends and expert opinion
Saumil Gandhi, senior commodity analyst at HDFC Securities, said, “In the coming days, investors will keep an eye on Trump’s decisions and his next policies, which may increase volatility in the bullion market.” Manav Modi, analyst at Motilal Oswal Financial Services, said, “The market will also keep an eye on the economic developments taking place in Davos. Along with this, the activities of the American market can also affect the prices of gold and silver.” At present, gold prices are at a high level, but the ongoing uncertainty in the global and domestic markets is supporting it further. Investors should keep an eye on market volatility and adjust their investment strategy accordingly.
