Gold price today: MCX Gold rates rise as focus shifts to Donald Trump's policies; experts share strategy for bullion

Gold price today: Gold prices rose in the domestic futures market during the morning session on Tuesday, January 21, amid a weakening US dollar, as market participants awaited further clarity on Donald Trump's policies following his return to the White House as the 47th President of the United States. MCX Gold for February 5 expiry was up 0.37 per cent, quoting at ₹78,838 per 10 grams, around 9:25 AM.

Donald Trump took the oath of office on Monday, January 20. Following his swearing-in as president, the US dollar weakened amid speculation that he would refrain from announcing aggressive tariffs immediately after taking office.

"After weeks of global speculation over which duties Trump would impose tariffs on his first day in office, news that Trump would take more time on tariffs drove a relief rally in global stocks and pressured the US dollar," reported Reuters.

Gold is priced in dollars globally. A decline in the US currency makes the yellow metal attractive in other currencies, supporting its demand.

"President Trump has talked of tariffs of as much as 10 per cent on global imports as well as 60 per cent on Chinese goods and a 25 per cent import surcharge on Canadian and Mexican products. However, yesterday, there were several comments from the White House, one of them stating that President Trump won't impose new tariffs yet," Manav Modi, an analyst of commodity research at Motilal Oswal Financial Services, observed.

"Market participants will now watch any updates from President Trump and officials at Davos, which could trigger volatility in the market. The US market also resumes from a holiday, which could also provide swings in the market," said Modi.

Experts share strategy for bullion

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. He suggests buying silver around ₹91,100 with a stop loss of ₹90,450 for the target of ₹92,400.

"Gold has support at $2,722-2,700, while resistance at $2,745-2,764 per troy ounce and silver has support at $30.84-30.50, while resistance is at $31.40-31.74 per troy ounce in today’s session. MCX Gold has support at ₹78,300-78,080 and resistance at ₹78,800-79,000, while silver has support at ₹90,750-90,200 and resistance at ₹92,000-92,650," said Jain.

According to Renisha Chainani, Head of Research at Augmont, the short-term outlook for gold is still favourable due to tariff uncertainty. However, maintaining these gains will require further Fed rate cuts and ongoing dollar weakening. Investors should watch Trump's policy announcements to see their possible effects on the market.

Chainani highlighted that another focus this week is the Bank of Japan's interest rate decision on January 24. Recent inflation and wage figures look promising, backing the Bank of Japan's plan to increase interest rates at this week's meeting.

Technically, Chainani believes gold has given a breakout from its symmetrical triangle at ₹78,500.

"This week, we are likely to see this uptrend continuing and gold breaking its previous record high of $2,800 ( ₹80,000)," said Chainani.

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