Gold, Silver volatile after record highs: What should investors do? Key support, resistance, targets

Global markets remained volatile over the weekend amid geopolitical developments, mixed cues from US equities, and sharp movements in commodities.

US President Donald Trump has warned India of higher tariffs over its purchase of Russian crude oil, according to reports. While describing Prime Minister Narendra Modi as a “very good person,” Trump said tariffs could be increased further if cooperation is not received on the issue of Russian oil. India’s tariff rate was increased to 50% in August.

The US carried out a military operation in Venezuela on January 3. Venezuelan President Nicolas Maduro was detained and taken to the United States. Vice President Delcy Rodriguez has been appointed interim president.

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Trump warned of strict action if governance was not handled properly. China, Iran, and Russia condemned the US action. India said the issue should be resolved peacefully.

OPEC Plus Keeps Oil Policy Unchanged

OPEC Plus held a meeting on Sunday. The group did not announce any change in its oil policy for 2026. The decision taken in November to pause production increases between January and March remains unchanged. The next OPEC Plus meeting is scheduled for February 1.

Dollar, Bonds Firm; Precious Metals Volatile

The dollar index rose for the sixth straight session. US bond yields closed at a one-week high. Gold and silver prices saw high volatility last week due to profit-taking from record levels. Gold February futures settled at $4,345.50 per troy ounce on Friday, down 0.27%. Silver March futures settled at $71.30 per troy ounce, up 0.57% in international markets.

In the domestic market, gold February futures settled at Rs 1,35,761 per 10 grams, down 0.03%. Silver March futures settled at Rs 2,36,316 per kilogram, up 0.19%.

Gold, Silver Outlook

Manoj Kumar Jain said, “Gold and silver witnessed heavy profit booking last week as traders locked in gains amid year-end closing.” He said, “Mixed signals from US Federal Reserve officials on further interest rate cuts triggered selling pressure in precious metals.”

Jain said, “Geopolitical tensions and safe-haven buying could support prices at lower levels.” He said, “Delays in the Russia-Ukraine peace deal and weakness in the rupee are supporting domestic prices.”

Jain said, “Silver could hold support near $65 per troy ounce, while gold could hold support near $4,240 per troy ounce on a closing basis.” For the current session, he said, “Gold has support at $4,315–4,284 and resistance at $4,380–4,410 per troy ounce.”

He said, “Silver has support at $69.40–68.00, while resistance is seen at $72.70–74.40 per troy ounce.” On MCX, Jain said, “Gold has support at Rs 1,35,100–1,34,400 and resistance at Rs 1,36,300–1,37,000.” He said, “Silver has support at Rs 2,32,400–2,28,800 and resistance at Rs 2,41,000–2,45,000.”

US Markets End Mixed; Chip Stocks Outperform

US equity markets showed mixed trends in the first trading session after the holiday. The Dow Jones Industrial Average ended higher after recovering around 150 points from intraday lows. The S&P 500 snapped a four-day losing streak and closed higher. The Nasdaq Composite ended marginally lower by around six points after falling nearly 350 points from the day’s high. Every week, all three major US indices posted losses.

Chip stocks outperformed. Nvidia rose around 2%. Intel and Micron gained between 7% and 10%. Meta, Microsoft, Amazon, and Palantir declined between 2% and 5%. Tesla also ended lower.