Gold and silver opened on contrasting notes in Thursday's trading session, with gold falling below the ₹1.38 lakh mark while silver posted gains on the Multi Commodity Exchange (MCX). The divergent performance reflects mixed technical pressures and global macro drivers affecting precious metals markets.

Current Market Performance

The latest trading data shows a clear divergence between the two precious metals:

Gold's decline pushed prices below the psychologically important ₹1.38 lakh per 10 grams level, while silver's gain helped it recover from the previous session's sharp decline.

Previous Session Weakness

Wednesday's session ended on a weak note for both metals across domestic and global markets. The closing performance highlighted the pressure from stronger US economic data:

Global Factors Impacting Prices

Several key economic indicators influenced precious metals pricing. The US ADP non-farm employment data showed a surprise surge of 41,000, pointing to a resilient job market. Simultaneously, the US Dollar Index (DXY) regained strength, hovering near 98.69 with a marginal gain of 0.01 points, capping gains for both gold and silver.

However, the JOLTS report provided some relief, reflecting a minor dip in new job openings compared to expectations, offering cushion to precious metals at lower price levels.

Central Bank Support

Continued central bank buying has helped provide a floor for gold prices. The People's Bank of China extended its gold buying spree for a 14th consecutive month, having accumulated 42 metric tons since November 2024. This forms part of a broader push toward de-dollarization amid global uncertainty.

Technical Analysis and Trading Levels

Market experts identify crucial support and resistance levels for both metals on MCX:

Gold Trading Levels:

• Support: ₹1,37,200 – ₹1,36,000
• Resistance: ₹1,38,800 – ₹1,39,500
• Stop Loss: Below ₹1,36,000 for long positions

Silver Trading Levels:

• Support: ₹2,46,600 – ₹2,42,000
• Resistance: ₹2,54,000 – ₹2,58,800
• Stop Loss: Below ₹2,46,000 for long positions

Technically, silver is expected to hold support near $65 per troy ounce, while gold may find stability around $4,240 per troy ounce on a closing basis.

Physical Gold Rates Across Major Cities

Physical gold prices vary across major Indian cities:

The current market environment reflects elevated price swings in both metals, with traders advised to monitor key technical levels closely. If support levels hold through the week, a strong upward move in both metals could emerge in upcoming sessions.

Gold and silver prices in India remained largely steady on January 8, reflecting a balance between global economic trends, domestic demand patterns, and currency movements. According to market data, 24-carat gold is trading at ₹1.38 lakh per 10 grams nationally, while silver maintains levels at ₹2.51 lakh per kilogram, showing resilience despite earlier weekly losses.

Current Price Levels Across Cities

The precious metals market demonstrated consistent pricing patterns across major Indian metropolitan areas, with regional variations reflecting local demand and tax structures.

Southern markets continued to show premium pricing, with Chennai recording the highest rates at ₹1,38,660 for 24-carat gold and ₹2,52,070 for silver per kg. Delhi maintained the most competitive gold pricing at ₹1,38,020 per 10 grams, while 22-carat gold traded at ₹1,26,518.

Market Outlook and Analysis

Aateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, highlighted the impact of currency movements on local sentiment. "Rupee appreciation weighed on local bullion sentiment, even as broader global cues remain mixed. The week ahead is data-heavy for the US, with ADP non-farm employment, non-farm payrolls, and initial jobless claims lined up, which could add volatility and direction to gold prices."

Trivedi expects gold to trade in a volatile range between ₹1.36 lakh and ₹1.41 lakh per 10 grams in the near term, reflecting uncertainty around upcoming economic data releases.

Investment Perspective and Portfolio Strategy

Client Associates, a multi-family office managing over $7 billion in assets, emphasized precious metals as key portfolio diversifiers in their Annual Equity Assessment. Nitin Agarwal, Head of Investment Research, noted that "equity markets are likely to be driven less by broad-based rallies and more by selective opportunities anchored in fundamentals."

The report highlighted that precious metals performed strongly previously due to a weaker US dollar, geopolitical tensions, and shifting monetary policies. However, given the recent rally, the firm remains cautious on silver, advising against fresh positions at current levels.

Economic Context

India's economy is expected to grow 6.8% in FY26, supported by strong consumption, robust corporate earnings visibility, and policy measures boosting household incomes. High-frequency indicators, including manufacturing and services PMIs, remain in expansionary territory, while GST collections suggest sustained economic activity, providing a supportive backdrop for precious metals demand.