Gold prices fall, silver down Rs 950 on profit booking. What should investors do?

Gold and silver prices opened on a weak note on Wednesday, January 7, as investors booked profits a day after the precious metals hit one-week highs. On the Multi Commodity Exchange (MCX), gold February futures were trading at Rs 1,38,834 per 10 grams, down Rs 250 or 0.18%, while silver March futures slipped 0.4% or Rs 950 to Rs 2,57,861 per kilogram.

In the previous session, both metals had advanced on safe-haven demand amid rising geopolitical tensions and heightened global uncertainty. With investor sentiment turning defensive, bullion continues to find support as a hedge against market volatility.

In the international market, spot gold fell 0.6% to $4,469.04 an ounce after a nearly 3% rally in the previous session. All eyes now turn to the awaited US payroll data for cues on the Federal Reserve’s interest rate trajectory.

Adding to the tension, the US President issued strong warnings to Colombia, Cuba and Mexico regarding illicit drug shipments, further fuelling market unease. Following Maduro’s capture, Swiss authorities reportedly ordered a freeze on his assets, a move analysts believe could deepen safe-haven flows into gold and silver.

How should you trade gold?

“Risk sentiment continues to favour higher allocation towards gold amid renewed geopolitical tensions, with reports of the US crossing the Venezuela border and heightened alerts involving its leadership adding to global uncertainty. These developments are keeping safe-haven demand firm. Gold is expected to remain volatile but biased upward, with a trading range between Rs 1,37,000 and Rs 1,42,000 in the near term,” said Jateen Trivedi of LKP Securities.

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Gold rates in physical markets

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,01,928 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,184 per 8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,01,808 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,064 per 8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,02,648 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,984 per 8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,01,808 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,064 per 8 grams.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)