Gold prices surged sharply in domestic futures trade on Wednesday, January 28, breaking the ₹1.6 lakh per 10 grams mark for the first time, as safe-haven demand strengthened amid global uncertainties and a weaker dollar.
MCX gold February futures rose by more than ₹4,700, or nearly 3 percent, to hit a fresh record high of ₹1,62,429 per 10 grams in morning trade. The rally was driven by a combination of geopolitical tensions, uncertainty around US trade policies, expectations of interest rate cuts, and firm spot demand.
The dollar index slipped around 0.30 percent, making gold cheaper for overseas buyers. According to Reuters, the dollar recently fell to a four-year low against a basket of major currencies, lending further support to bullion prices.
Concerns over the global economic outlook have intensified after US President Donald Trump renewed tariff threats against South Korea and Canada, adding to trade-related uncertainty. Meanwhile, progress on an India–US trade deal remains unclear, keeping investors cautious.
Market attention is also firmly on the US Federal Reserve’s policy decision due later on January 28. Recent data showed US consumer confidence falling to its lowest level in more than eleven years, raising concerns about slowing economic momentum.
While the Fed is widely expected to keep interest rates unchanged at this meeting, markets are pricing in at least two rate cuts later this year, possibly in the second half. Analysts believe a softer US labour market could push the central bank towards easing.
According to Jigar Trivedi, senior research analyst at IndusInd Securities, investors will closely watch Fed Chair Jerome Powell’s commentary for signals on the future policy path, especially amid increasing political pressure to lower rates.
Commodity experts advise long-term investors to continue accumulating gold on price dips, given the supportive global backdrop.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold can be bought on declines as long as it holds above ₹1,56,000 on a closing basis, with an upside target of ₹1,65,000. For silver, he expects further upside if prices stay above ₹3,44,000, with targets of ₹3,70,000 and ₹3,84,000.
However, analysts caution that short-term and intraday traders should remain alert to volatility and track key support and resistance levels closely, as sharp price swings are likely in the run-up to major global policy events.
