Gold Price Prediction Today

According to Manav Modi, a senior analyst in commodity research at Motilal Oswal Financial Services, there’s a positive outlook for gold prices. He suggests that investors should approach buying in a methodical way.

Despite the Christmas and New Year holidays, the market saw significant volatility last week. Silver fluctuated above $10, while gold prices dipped under $4,400 after staying around $4,500 for several days. This ongoing volatility seems to stem from disparities between international and domestic markets.

Currently, gold is trading at a premium of over ₹3000 over the spot price, with a variance exceeding 2% in domestic gold prices.

Recent developments, particularly regarding the US taking control of Venezuela, have heightened risk premiums and created a degree of uncertainty across various markets. How the market reacts when it reopens after the New Year will be interesting, especially with US President Donald Trump influencing supply.

Gold prices have recently been testing lower levels near ₹135,000, inching up gradually now. The technical outlook favors a buy-on-the-dip approach, ideally through staged investments. Key support levels remain at ₹135,000 and ₹132,000, while immediate resistance is noted near ₹138,000. This aligns with the upper Bollinger Band and the 61.8% Fibonacci extension level.

If trading volume exceeds this resistance level, it might trigger further buying. On the other hand, a fall through support could lead prices towards the lower boundary at ₹130,000. Conversely, breaking the resistance might point towards the ₹143,000-144,000 range.

As the week starts, the focus now shifts to upcoming inflation data, GDP figures, and PMI reports from major economies, alongside delayed US labor market updates. These indicators are anticipated to influence expectations regarding monetary policy and the direction of gold and silver prices.