DBT Bureau
Pune, 23 Jan 2026
According to Kedia Advisory, gold prices posted a sharp rally, settling higher by 2.28% at ₹156,341, supported by persistent geopolitical uncertainties, a softer U.S. dollar, and growing expectations of Federal Reserve interest rate cuts. Although gains were capped after U.S. President Donald Trump eased his stance on Greenland and retreated from proposed tariff threats against Europe, underlying safe-haven demand remained intact. Lingering uncertainty around the EU–US trade agreement, coupled with a selloff in Japanese government bonds driven by fiscal concerns, continued to underpin investor interest in gold. Fundamentally, the medium- to long-term outlook for bullion remains constructive. Goldman Sachs raised its end-2026 gold price forecast to $5,400 per ounce, highlighting sustained private-sector diversification into gold. Other global banks echoed the bullish bias, with Commerzbank, HSBC, and UBS projecting gold prices in the $4,800–$5,000 range through 2026 amid geopolitical risks, rising global debt, and pressure on the U.S. dollar. Central bank demand remained a key pillar, led by continued purchases from China and Poland, while gold holdings in London vaults rose 2.24% month-on-month to 9,106 tons. Technically, the market is witnessing short covering, as open interest declined by 6.49% to 11,402 while prices surged by ₹3,479. Gold is supported at ₹151,055; a break below could test ₹145,760. On the upside, resistance is seen at ₹159,365, with a move above opening the path toward ₹162,380.
Silver prices extended gains, settling higher by 2.76% at ₹327,289, supported by lingering geopolitical risks, a weaker U.S. dollar, and spillover strength from gold. However, upside was partially tempered after U.S. President Donald Trump backed away from proposed tariff threats against Europe and announced a framework agreement with NATO on Greenland, easing immediate trade-related tensions and reducing some safe-haven appeal. Macroeconomic data from the U.S. remained supportive but mixed for precious metals. The U.S. economy grew at a robust annualized pace of 4.4% in Q3 2025, the strongest since Q3 2023, driven by solid consumer spending, stronger exports, and higher government outlays. Meanwhile, initial jobless claims edged up marginally to 200,000, remaining well below expectations and indicating continued labor market resilience. From a fundamentals perspective, global banks retain a constructive medium-term view on silver. Commerzbank projects silver at $95/oz by end-2026, while HSBC sharply raised its 2026 forecast to $68.25/oz, citing a weaker dollar, mild supply-demand deficits, and sustained institutional investment demand. Supply-side risks persist as Chinese inventories have fallen to decade lows, with large volumes shipped to London, keeping global liquidity tight despite rising vault holdings. Technically, the market is witnessing short covering, with open interest down 0.35% to 9,745 while prices surged by ₹8,797. Silver is supported at ₹310,640; a break below could test ₹293,995. On the upside, resistance is seen at ₹337,330, with a move above opening the door toward ₹347,375.
(Disclaimer: This information is for educational purposes only. Please consult your financial advisor before taking positions in stocks)
