Gold prices displayed mixed signals on January 9, with global spot rates declining marginally while maintaining strong weekly performance. The precious metal faced pressure from currency volatility and profit-booking activities ahead of key US economic data releases.

Global and Domestic Price Movement

Gold spot prices traded at $2,470.51 per ounce at 7:45 am on January 9, marking a 0.15% decline from the previous close. However, the metal has demonstrated resilience with a 3.31% gain over the past week, indicating underlying strength despite short-term fluctuations.

On the Multi Commodity Exchange (MCX), gold futures closed at ₹1,37,700 for 10 grams on January 8, representing a minimal 0.03% decline from the previous close of ₹1,37,742.

Market Analysis and Currency Impact

Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, explained that gold traded weak with MCX gold slipping by nearly ₹900 to ₹1,36,950, despite relatively steady international prices. Rupee volatility weighed on domestic bullion sentiment, even as broader global cues remained mixed.

The rupee ended lower on January 8 at 85.91 after a volatile session. Fresh intervention by the Reserve Bank of India was outweighed by tariff worries and equity outflows, contributing to the currency's weakness.

Technical Levels and Support-Resistance

According to the January 8 Augmont Bullion report, gold rebounded after touching the psychological level of $2,500 (₹1,39,000). The technical analysis reveals key levels for traders:

The Augmont report noted that precious metals saw profit-booking as traders locked in profits ahead of the US NFP report, with investors weighing mixed US economic data while geopolitical risks remained a significant focus.

Current Gold Prices by Purity

Gold prices vary significantly based on purity levels, with 24K commanding the highest rates:

City-wise Gold Rates

Gold rates across India's major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs:

Market Outlook

Trivedi indicated that the week ahead is data-heavy for the US, with key releases including ADP non-farm employment and non-farm payrolls likely to add volatility and provide direction to gold prices. For the immediate term, gold is expected to trade in a volatile range between ₹1,35,000 and ₹1,38,000 over the next few sessions. MCX gold futures had peaked at ₹1,40,465 on December 26, providing context for current price levels.

Precious metals markets extended their decline for the second consecutive session as a strengthening US dollar continued to pressure dollar-denominated commodities. The sell-off accelerated amid mixed US economic data and ongoing geopolitical tensions that supported the greenback's rally.

MCX Gold and Silver Performance

Gold February futures on MCX tumbled significantly, declining ₹1,566 per 10 grams to reach the day's low of ₹136,443. This marked the second straight session of losses for the yellow metal. Silver March delivery futures experienced an even sharper correction, dropping ₹12,805 per kilogram to hit ₹237,800.

The cumulative two-day decline for silver reached ₹21,011 per kilogram, representing a significant correction from recent highs. From its record peak of ₹259,322, silver prices have retreated ₹21,522.

International Market Trends

International precious metals markets mirrored the domestic weakness. Spot gold prices fell 1.00% to $4,407 per troy ounce, while spot silver experienced a steeper decline of 4.50% to $74.47 per ounce. The white metal had previously reached a record high of $84 in late December before the current correction began.

Technical Analysis and Market Outlook

Ponmudi R, CEO of Enrich Money, provided technical insights on gold's price action. According to his analysis, the gold 20-day EMA at ₹135,509 continues to act as strong dynamic support, with buyers consistently stepping in on every dip. He identified a sustained breakout above ₹138,000 as a potential catalyst that could accelerate momentum toward ₹140,000-₹142,000. The preferred accumulation band remains ₹136,000-₹137,000, with the broader trend clearly favoring a buy-on-dips approach.

US Dollar Strength and Economic Data

The US dollar strengthened for the third consecutive day, reaching 98.70, making dollar-priced precious metals more expensive for holders of other currencies. This rally occurred amid mixed US economic indicators that offered limited clarity on Federal Reserve policy outlook.

Investors are now focusing on upcoming weekly jobless claims data and the December employment report for additional clarity on labor market conditions. On the geopolitical front, the US seized two Venezuela-linked oil tankers in the Atlantic Ocean, adding to market tensions.

Year-to-Date Performance and Analyst Projections

Despite the recent correction, gold prices remain up 1.14% in early 2026, following a remarkable 76.50% surge in 2025. HSBC analysts project gold could hit $5,000 per ounce in the first half of 2026, driven by geopolitical risks and rising fiscal debts. For silver, they expect trading between $58 and $88 in 2026, supported by supply deficits, robust investment demand, and high gold prices, though they warn of a potential market correction later in the year.