Gold prices rose ₹61 to ₹77,592 per 10 grams in futures trade on Wednesday (January 8), supported by fresh positions by speculators and persistent demand in the spot market.
Gold prices also rose marginally globally.
In New York, gold futures rose 0.10% to $2,651.27 an ounce.
Buying by central banks is supporting gold prices. Global central banks added 53 tonnes to their reserves in November 2024.
The Reserve Bank of India (RBI) added 8 tonnes to its gold reserves last month, taking its total purchases for this year to 73 tonnes.
This strengthened India’s position as the second-largest buyer of gold in 2024 after Poland.
China also expanded its reserves by 5 tonnes in November, indicating rising demand amid global economic uncertainty.
“Central bank purchases continue to be a key driver for gold markets, reflecting strong confidence in the metal amid economic concerns,” said Renisha Chainani, head of research at Augmont.
Former US President Donald Trump’s statements on tariffs and geopolitical issues have strengthened the US dollar, limiting gold’s gains. Meanwhile, investors are eyeing the US non-farm payrolls report due on Friday. Weak data could raise expectations of the Federal Reserve cutting interest rates in 2025, which could lead to further gains in gold.
According to Chainani, gold prices are attempting to establish a base at the $2,600-$2,620 per ounce (₹76,000-₹76,500 per 10 grams) level. Analysts predict gold to move higher, targeting $2,680 an ounce (₹78,000 per 10 gram) and $2,720 an ounce (₹79,000 per 10 gram).
With central bank buying and economic uncertainties supporting prices, gold remains a favourable choice for investors.
Experts recommend buying on dips to cash in on potential gains.
