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Informist, Friday, Jan. 30, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver plunged on the Multi Commodity Exchange of India and the COMEX on Friday due to profit booking after the recent surge in prices. Market sentiment was also hurt by reports that the US Federal Reserve could get a more hawkish chair, which strengthened the dollar index.

 

At 1623 IST, the most-active April GOLD contract on the MCX was down 5% at INR 174,978 per 10 grams. The most-active April contract on COMEX was down 5% at $5,105.9 per ounce. At 1623 IST, the most-active March SILVER contract on the MCX was down 12% at INR 351,823 per kilogram. The most-active March contract on COMEX was down 13% at $99.85 per ounce.

 

Gold prices fell as the dollar index bounced back on Friday after US President Donald Trump said he intends to announce his pick to replace Fed Chair Jerome Powell, as speculation intensifies over who will lead the US central bank after Powell steps down from the job in May.

 

"After delivering one of the strongest rallies in modern commodity history, precious metals have entered a sharp corrective phase," Ajay Kedia, director at Kedia Advisory, said in a note. Silver prices fell below $100 per ounce, after a surge of 63% in January, as reports that Trump may nominate Kevin Warsh for Fed chair boosted the dollar, Kedia said. Meanwhile, Bank of China has advised its clients to manage market risks and control precious metals positions, Kedia said.

 

At 1625 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was up 0.5% at 96.60. A strong dollar makes commodities priced in the currency such as gold and silver, less appealing to those holding other currencies, denting demand. "So, a potentially less dovish Fed Chairman pick, a rebound in the dollar and gold giving way to overbought conditions have contributed to the decline in the price of the precious metal," Reuters quoted KCM Chief Trade Analyst Tim Waterer as saying. "Rumours that Kevin Warsh will replace Jerome Powell as Fed Chair has weighed on gold during Asian trade," Reuters quoted Matt Simpson, a senior analyst at StoneX, as saying.

 

However, the fall in prices could be limited due to geopolitical tensions which increased the safe-haven demand for precious metals. Trump warned Iran that "time is running out" to negotiate a deal on its nuclear programme following the steady build-up of US military forces in the Gulf. US Defence Secretary Pete Hegseth said at a Cabinet meeting on Thursday that his department would be able to deliver on any military instruction given by Trump, The Guardian reported. 

 

Trump has threatened to impose tariffs on countries that supply oil to Cuba, as Washington steps up its pressure on the Caribbean nation, the BBC reported. The proposed new levies were outlined in an executive order, although no details were given on specific tariff rate or which countries could be targeted.  

 

"Additionally, US Federal Reserve hit a pause on its interest rate cutting cycle and offered no hint about when another rate cut might come. We expect Fed to monitor the upcoming economic data and see how economy evolves before taking any further decision," ICICI Direct said in a report. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 148,000–INR 168,000 per 10 grams

--COMEX gold seen at $4,900.0–$5,250.0 an ounce

--MCX silver seen at INR 280,000-INR 388,000 per kg

--COMEX silver seen at $90.00-$112.00 an ounce

 

End

 

US$1 = INR 91.98

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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