The precious metal space continues to stay in focus. However, volatility has cooled meaningfully. Most experts believe that the current price action across the bullion space indicates a fairly more healthy balance between profit booking. Most market observers are also suggesting “dip-based accumulation.” The rebound in the US dollar and US data are the key drivers of sentiment this week.
Gold rate today: In consolidation phase
The gold prices edged lower as the dollar rose after bullion notched a more than 2% gain in the previous session. The US inflation data came in weaker than expected, and that’s also lifted rate cut expectations by the US Fed.
Spot gold prices are hovering above the $5,000/oz levels. The US Consumer Price Index rose 0.2% in January, below economists’ expectations of a 0.3% increase. The lower inflation usually increases the chances for interest rate cuts, and that’s what is getting the market participants excited.
Speaking on the outlook for gold, Ponmudi R, CEO of Enrich Money highlighted that “COMEX Gold continues to consolidate above the $5,000 zone, successfully defending the structural demand base formed after last week’s aggressive liquidation. The broader multi-year rising channel remains intact, with the $4,500–$4,600 breakout cluster acting as a key long-term support region. Current price compression suggests energy build-up rather than structural weakness.”
Highlighting the levels to watch out for MCX Gold Futures, he added that, “Price behavior at lower levels indicates accumulation rather than distribution. A sustained move above Rs 1,60,000 would likely re-ignite bullish momentum toward Rs 1,65,000–1,70,000+, while meaningful downside risk remains limited unless COMEX gold breaches its structural support clusters decisively.”
Silver rate today: Weakness ahead?
Silver has seen relatively more volatile price action. That said, most analysts believe that the bulk of the speculative trades are probably out of the system. Going forward, they believe that the structural industrial demand will be a key decider for price action
According to Ponmudi R, “Sustained trade above $85 would materially improve the probability of extension toward $90–$105 over the medium term. A failure below $71 may extend the consolidation phase but does not immediately invalidate the broader structural uptrend.”
In terms of MCX Silver, most analysts see the base formation strengthening. In terms of pure levels to watch, Ponmudi R,believes that “Price action reflects gradual absorption, with downside momentum notably weaker compared to the prior week’s volatility spike. Volatility compression at these levels signals accumulation rather than liquidation.”