Gold Price Today (January 9): MCX Gold, Silver Extend Gains on Weak Dollar and Geopolitical Uncertainty
Gold and silver prices traded higher in the domestic futures market on Friday morning, supported by firm spot demand, a softer US dollar, and persistent geopolitical tensions that continued to fuel safe-haven buying interest.
At around 9:10 am IST, MCX gold February futures were trading 0.20% higher at ₹1,38,012 per 10 grams, while MCX silver March futures gained 0.72% to ₹2,45,072 per kg, according to market data. The upward move comes amid improving sentiment for precious metals globally.
Dollar Weakness Boosts Bullion Prices
A key factor supporting gold prices was weakness in the US dollar. The dollar index, which had earlier climbed to the 98.99 level, eased on profit booking during Asian trade. A weaker dollar typically makes dollar-denominated commodities such as gold cheaper for overseas buyers, thereby increasing demand.
Reflecting this trend, US gold February futures were trading about 0.30% higher in early trade. Analysts noted that as long as the dollar remains under pressure, gold prices are likely to find support despite intermittent volatility.
Geopolitical Developments Drive Safe-Haven Demand
Geopolitical uncertainty continues to be one of the strongest pillars supporting gold prices. Market participants remain focused on developments related to the US-Venezuela situation, while recent remarks by US President Donald Trump regarding Greenland have triggered sharp reactions across Europe.
Several European Union leaders, including those from France, Germany, Italy, Poland, Spain, and the United Kingdom, issued a joint statement earlier this week reaffirming their support for Greenland’s sovereignty. The strong diplomatic response has added to broader geopolitical unease, benefiting safe-haven assets such as gold.
In another development, President Trump warned of a strong US response if Iranian authorities resort to violence against protesters, stating that the US would “come to the rescue” of demonstrators if required. These comments have added to geopolitical tensions in the Middle East, a region historically linked with spikes in gold demand during periods of uncertainty.
Tariff and Sanctions Concerns Add to Market Anxiety
Apart from geopolitical risks, concerns over trade policy and global economic growth have also supported bullion prices. Republican Senator Lindsey Graham, along with President Trump, recently backed a Russia sanctions bill that could potentially impose tariffs of up to 500% on countries importing Russian oil.
Market participants fear that such aggressive tariff measures could disrupt global trade flows and slow economic growth, increasing the appeal of safe-haven assets. Analysts said that uncertainty surrounding US trade policy remains a significant tailwind for gold prices in the current environment.
Investors Turn Attention to US Economic Data
While geopolitical developments remain in focus, investors are also closely watching key US macroeconomic data, particularly the December non-farm payrolls (NFP) report, which is expected to provide crucial insights into the health of the US labor market.
The data is also likely to influence expectations regarding the Federal Reserve’s interest rate trajectory in the coming months. Lower interest rates typically support gold prices, as the metal does not offer interest income and becomes more attractive when borrowing costs fall.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said markets are anticipating strong payroll growth for December, while the unemployment rate is expected to remain steady.
“The upcoming data could influence monetary policy expectations for the year, with markets currently pricing in two rate cuts by the Federal Reserve,” Trivedi said.
Is It the Right Time to Buy Gold?
Experts remain largely constructive on gold’s medium- to long-term outlook, citing strong underlying fundamentals such as central bank buying, geopolitical uncertainty, and expectations of easier monetary policy. However, they caution that prices may remain volatile in the near term.
Manoj Kumar Jain of Prithvifinmart Commodity Research advised investors to exercise patience before initiating fresh positions.
“There is no change in the long-term fundamentals of gold, and the broader trend remains positive. However, near-term volatility cannot be ruled out. We suggest waiting for some stability before initiating fresh positions in the bullion markets,” Jain said.
Key Support and Resistance Levels to Watch
For short-term traders, experts recommend closely monitoring key technical levels before taking any positions.
According to Jain, international gold prices have immediate support at $4,430 and $4,400 per troy ounce, while resistance is seen at $4,484 and $4,522 per troy ounce during the session.
Silver has support at $73.80 and $71.70, with resistance at $78 and $80 per troy ounce.
In the domestic market, MCX gold has support levels at ₹1,37,000 and ₹1,36,200 per 10 grams, while resistance is placed at ₹1,38,400 and ₹1,39,100.
MCX silver has support at ₹2,39,500 and ₹2,34,400 per kg, while resistance is seen at ₹2,48,000 and ₹2,51,500.
Trivedi added that MCX gold February futures are likely to find intraday support near ₹1,37,500 per 10 grams.
Outlook
Overall, gold and silver prices remain supported by a combination of dollar weakness, geopolitical uncertainty, and macroeconomic risks. While short-term price swings may persist due to data-driven volatility, analysts believe the broader outlook for precious metals remains constructive, particularly for investors with a medium- to long-term horizon.
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