Gold rates in India experienced a sharp rally on January 10, with strong domestic demand driving prices higher across all categories. The precious metal sector witnessed significant gains despite global market headwinds from a strengthening U.S. dollar, highlighting robust local market sentiment.

Domestic Gold Price Performance

Indian gold markets delivered impressive gains across all purity levels on January 10. The price movements reflected strong end-week demand and positive market sentiment in the domestic market.

The substantial price increases across all gold categories demonstrate the strength of domestic demand, with 24-carat gold leading the rally with the highest absolute gains.

Silver Market Rally

Silver prices mirrored gold's strong performance, delivering even more dramatic percentage gains. The white metal experienced substantial buying interest, resulting in significant price appreciation.

MCX Futures Performance

Multi Commodity Exchange futures showed mixed performance, with gold futures maintaining strength while silver futures faced some pressure. MCX gold futures for February 5 delivery gained 56 points or 0.04% to settle at ₹1,38,875. However, silver futures for March 5 delivery declined 0.29%, losing 723 points to close at ₹2,52,002 per kg.

International Market Dynamics

Global precious metals markets provided support to domestic prices, with spot gold gaining 0.5% to $4,496.09 per ounce as of 01:31 p.m. ET. The international market positioned for approximately 3.9% weekly gains, with bullion having reached a record high of $4,549.71 on December 26. U.S. gold futures for February delivery settled 0.9% higher at $4,500.90, while spot silver surged 3.5% to $79.56 per ounce.

Technical Analysis and Market Outlook

According to Way to Wealth's commodity trend report, gold continues trading near $4,470 per ounce, supported by safe-haven demand from geopolitical tensions and central bank buying. MCX Gold maintains an uptrend with bullish structure intact, though recent sessions witnessed some profit-taking. The 10 and 20 DEMA lines provide strong support zones, with immediate support placed at 136,440-135,700 levels and resistance at 139,140-140,400. Traders can consider buying near support levels targeting 139,140-140,400, while any close below 135,400 would warrant a review of the current bullish view.

Gold prices surged on Friday, capping off a strong weekly performance as investors responded to disappointing US employment data and mounting global uncertainties. The precious metal's rally underscores its continued appeal as a safe-haven asset amid economic and geopolitical turbulence.

Gold Performance and Market Drivers

Spot gold climbed 0.5% to reach $4,496.09 per ounce as of 01:31 p.m. ET, positioning the metal for approximately a 3.9% weekly gain. The precious metal had previously touched a record high of $4,549.71 on December 26, demonstrating sustained upward momentum.

US gold futures for February delivery settled 0.9% higher at $4,500.90, reflecting strong institutional interest in the precious metal.

Weak US Employment Data Supports Gold

The December US nonfarm payrolls report provided significant support for gold prices, showing job creation well below market expectations. The data revealed only 50,000 new jobs were added, falling short of the anticipated 60,000 gain. However, the unemployment rate improved to 4.4%, beating forecasts of 4.5%.

"Payrolls are showing us a poor job creation environment. Potentially more (geopolitical tension), somewhat higher oil prices, which are inflationary, uncertainty and an easing Fed - all a combination for precious metals," explained Bart Melek, global head of commodity strategy at TD Securities.

Federal Reserve Policy Expectations

Market participants continued to factor in at least two Federal Reserve rate cuts this year, creating a historically favorable environment for gold investment. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making the precious metal more attractive to investors.

Geopolitical Tensions Fuel Safe-Haven Demand

Multiple geopolitical developments contributed to gold's appeal as a safe-haven asset:

• Intensifying unrest in Iran
• Continued fighting in Russia's war in Ukraine
• US capture of Venezuela's President Nicolas Maduro
• Washington's renewed signals over taking control of Greenland

These tensions reinforced gold's traditional role as a hedge against global uncertainty and political instability.

Broader Precious Metals Rally

Other precious metals also posted strong performances, reflecting broad-based safe-haven demand across the sector.

Bank of America raised its 2026 average platinum and palladium price forecasts, citing dislocations from trade disputes amid physical market tightness, while China's imports add support.

Market Outlook and Regional Demand

Metals Focus projected gold prices could hit fresh record highs above $5,000 in 2026, citing de-dollarization trends and geopolitical risks as key drivers. However, regional demand patterns showed mixed signals, with retail demand for gold in India remaining subdued due to elevated prices, while gold premiums in China widened.

Uncertainty over tariffs persisted, as the US Supreme Court was not expected to issue a ruling on Friday in a major case testing the legality of sweeping global tariffs, with decisions now expected on January 14.