• Gold and Silver prices declined, weighed down by a firmer US dollar, but remained on track for their strongest monthly gain since 1980, as investors continued to seek safety amid ongoing geopolitical and economic uncertainty.
• Despite the fall, Silver continued to outperform, with prices set to rise over 50% in January, marking the best monthly performance on record and extending its rally to nine consecutive months.
• The broader precious metals rally has been driven by persistent geopolitical and macroeconomic risks, coupled with a sharp depreciation in the US dollar following policy uncertainty in Washington and President Donald Trump’s apparent comfort with a weaker currency.
• Gold demand is broadening across investor classes, ranging from crypto-linked capital flows to central banks, as precious metals remain in focus during periods of high returns and uncertainty.
• Geopolitical risks intensified further after President Trump urged Iran to negotiate a nuclear deal, while Tehran responded with threats of retaliation against the US, Israel, and their allies.

Technical Triggers        

• Gold prices can consolidate here in the range of $5150 to $5500 before resuming its uptrend towards $5800–6000 (Rs.1,87,000–1,95,000). Strong support lies at $5150 (Rs.1,60,000); a break could trigger profit-booking toward $5000–$4750.
• Silver prices can consolidate here in the range of $108 to 120 before resuming its uptrend towards $125–130 (Rs.4,30,000–4,50,000). Key support lies at $108 (Rs.3,60,000), below which prices may retrace to $103–$98.

Support and Resistance

source: AUGMONT