Precious metals commenced the new year with a bang, and both gold and silver closed on a strong note by the end of January 2025.

The sentiment towards precious metals turned positive on concerns relating to the wide-ranging tariff announced by the newly elected President of the United States of America, Donald Trump, who took charge on January 20.

As a result, Comex gold moved to a record high, crossing the psychological $2,800 mark. Comex silver has yet to hit an all-time high, but it managed to post handsome gains in January. 

Comex gold closed 7.35% higher in January to settle at $2,835 an ounce. Comex silver gained 10.34% in January, closing at $32.26 an ounce.

Reflecting the positive trend in the global markets, MCX gold gained 6.17% to settle at ₹82,233 per 10-gram at the end of January. MCX silver moved 7% higher last month to close at ₹93,328 per kilogram. 

Resumes uptrend

Comex gold resumed its uptrend after the price registered a breakout from the prior range to which the prices were confined. The breakout imparted momentum to the uptrend and pushed the Comex gold price to the target of $2,850-$2,900 mentioned last month. The short and medium-term outlook for gold remains positive.

Eyes $3,050-$3,100

The price will likely reach the next target of $3,050-$3,100. The positive outlook for gold will be threatened only if the price closes below the $2,580-$2,600 range. 

The Comex silver price, too, headed higher last month, but it has yet to cross the positive trigger level of $33 that was mentioned last month. 

A move past this level would impart momentum to the upside and could push the silver price to the next target of $35.5-$36. The positive outlook would be invalidated on a close below $29. MCX gold price, too, managed to break out from the prior trading range, and the price hit a new all-time high a couple of days ago. The short-term trend, as a result, has turned positive, and the price could now head to the next target of ₹88,500-₹89,500 range. The positive view would be negated if the price closes below ₹81,000. 

Near all-time high

The MCX silver price, too, ruled firm last month and is now trading near its all-time high. The short-term outlook is positive; we expect the silver price to reach the next target of ₹1,00,500-₹1,05,500. This expectation would be under threat if the MCX price were to close below ₹86,500.

To summarise, the short—and medium-term outlook for both gold and silver has turned positive as prices have resumed their major uptrend. 

The positive outlook would be invalidated only if the price drops below the levels mentioned above. 

(The author is a Chennai-based analyst and trader. The views and opinions featured in this column are based on an analysis of short-term price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)

Published on February 10, 2025