Gold price today: The domestic gold prices in the futures market settled in the green this week, despite the selloff seen last evening. Gold prices ended Friday’s trade at ₹123,400 on the MCX, down 2.64% amid hawkish comments from US Federal Reserve officials, dimming the yellow metal’s shine.
However, the bullion managed to rise over ₹2,000 or nearly 2% for the week. The steady rise seen in gold over the last few days had raised investors’ hopes that the precious metal could bounce back to its all-time high levels of ₹132,000 after being stuck in a range for nearly a month.
The renewed momentum in gold was evident amid structural central bank demand and profound geopolitical anxiety, said Justin Khoo, Senior Market Analyst – APAC, VT Markets.
What drove gold prices this week?
Analysts believe the economic data releases after the US government shutdown, the longest in history, could provide the next big trigger for bullion. The US shutdown, which ended Thursday, created a major data gap, leaving the Fed and traders flying blind ahead of next month’s policy meeting.
Manav Modi, Analyst – Precious Metal – Research, Motilal Oswal Financial Services, said there are weak economic data expectations after the shutdown, which is supporting bullion. Moreover, rebound after a brief profit booking and an increase in Shanghai gold inventories at a significant pace are some of the reasons supporting the rise, he added.
Central banks purchased more than 1,000 tons of gold each year in 2022 and 2023, and the 1,000-ton threshold has already been reached in 2024. Major buyers have been huge emerging-market economies such as China and Poland. Early forecasts for 2025 indicate that significant accumulation will continue in the region of 750-950 tons, providing a strong floor for demand even at higher prices.
Meanwhile, high volatility in the light of government data releases and suspense on the Fed’s rate trajectory cannot be ruled out.
Gold investment strategy
With gold gyrating wildly, analysts advise against chasing highs and use dips as opportunities to buy.
“With gold at lifetime highs and supported by long-term de-dollarisation tendencies, investors should remain optimistic but restrained. To reduce risk, avoid chasing highs and instead accumulate during 2-3% falls,” said Khoo.
Modi, too, advised investors to lock in some profit near recent highs and wait for some dips to accumulate for the next leg up.
₹1,18,000-1,20,000 remains a strong support, while ₹1,30,000–1,37,000 are possible targets from a medium-to-long-term perspective on domestic front, said the MOSL analyst.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.