Despite the recent retreat, bullion prices remain on track for their best monthly performance since the 1980s, supported by a weaker US dollar and persistent geopolitical risks.

gold retreated on Friday after touching a lifetime high above $5,200 per ounce earlier in the week, as traders booked profits following a historic rally. On the Multi Commodity Exchange (MCX)gold slipped 3-4 per cent from record levels of ₹1.73 lakh per 10 grams but remained relatively resilient compared to silver’s sharper decline.

The pullback came after gold surged to fresh all-time highs in early trade on Thursday, driven by strong safe-haven demand amid heightened global uncertainty. Despite the recent retreat, bullion prices remain on track for their best monthly performance since the 1980s, supported by a weaker US dollar and persistent geopolitical risks.

“Gold and silver prices declined, weighed down by a firmer US dollar, but remained on track for their strongest monthly gain since 1980, as investors continued to seek safety amid ongoing geopolitical and economic uncertainty,” said Renisha Chainani, Head of Research at Augmont. She noted that the broader precious metals rally has been driven by persistent macroeconomic risks and a sharp depreciation in the US dollar following policy uncertainty in Washington.

Market volatility intensified after the US President criticized the Fed Chairman for not cutting rates and urged Iran to negotiate a nuclear deal, while Tehran responded with threats of retaliation against the US, Israel, and their allies. “Gold demand is broadening across investor classes, ranging from crypto-linked capital flows to central banks,” Chainani added.

Rahul Kalantri, VP Commodities at Mehta Equities, identified gold support at $5,255-$5,175 with resistance at $5,440-$5,540. On MCX, support is placed at ₹1,62,650-₹1,58,310 while resistance stands at ₹1,74,850-₹1,79,950.

Chainani expects gold to consolidate in the $5,150-$5,500 range before resuming its uptrend towards $5,800-$6,000 (₹1,87,000-₹1,95,000). Strong support lies at $5,150 (₹1,60,000), with a break potentially triggering profit-booking towards $5,000-$4,750.

ASK Private Wealth recently upgraded gold to overweight from neutral, citing policy uncertainties and strong buying from central banks and consumers in China and India.

Published on January 30, 2026