February 7, 2025
Gold prices witnessed an early surge on Friday, ahead of the much-anticipated monetary policy decision by the Reserve Bank of India (RBI). Market analysts have been closely monitoring the movements in gold prices as investors brace for the central bank’s next steps, which could include a possible 25 basis points (bps) interest rate cut.
At the Multi Commodity Exchange (MCX), gold futures for April 4 expiry rose by 0.26% to ₹84,661 per 10 grams at around 9:10 AM. This gain aligns with broader global trends, where international gold prices have been trading near record highs, largely driven by economic uncertainties and geopolitical tensions.
The RBI’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, will announce its policy decision at 10:00 AM today. The central bank’s stance on interest rates, inflation, and economic growth will play a crucial role in shaping the trajectory of gold prices in the coming weeks.
Gold Prices Rally Amid Global Economic Uncertainty
The recent upswing in gold prices can be attributed to multiple factors, including a weaker rupee, ongoing fears of a global trade war, and signs of an economic slowdown in major economies like the United States and China. Spot gold prices have surged 11% in 2025, reflecting strong investor interest in the precious metal as a safe-haven asset.
According to Reuters, gold has been on track for its sixth consecutive weekly gain, driven by concerns over US monetary policy and uncertainty surrounding trade negotiations. Historically, gold prices tend to rise during periods of economic instability, currency depreciation, and political turmoil.
Gold Price Forecast: Will the Rally Continue?
Experts believe that gold prices may continue to climb, especially in light of US President Donald Trump’s trade policies and expectations of further monetary easing by central banks worldwide. Leading global financial institutions, including Citi, UBS, and Goldman Sachs, have revised their gold price forecasts upwards.
- Goldman Sachs has indicated that the upside risks to their $3,000 per ounce price target remain high due to increased investor hedging.
- Citi has adjusted its near-term gold price target to $3,000 per ounce, up from $2,800 per ounce in the previous forecast.
- UBS has also raised its 12-month gold forecast to $3,000 per ounce, citing sustained demand for the metal as a hedge against inflation and currency volatility.
Key Support and Resistance Levels for Gold and Silver
Market analysts expect gold and silver prices to remain volatile, influenced by the RBI’s monetary policy decision and the upcoming US employment report scheduled for release later today.
According to Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart, gold and silver will likely experience significant intraday price fluctuations. He outlined the following key levels for gold and silver in today’s trading session:
| Commodity | Support Levels | Resistance Levels |
| Gold (International) | $2,858 – $2,844 per ounce | $2,888 – $2,904 per ounce |
| Silver (International) | $32.40 – $32.10 per ounce | $32.88 – $33.20 per ounce |
| Gold (MCX – INR) | ₹84,040 – ₹83,700 | ₹84,800 – ₹85,100 |
| Silver (MCX – INR) | ₹94,750 – ₹94,000 | ₹96,200 – ₹97,000 |
Similarly, Rahul Kalantri, VP of Commodities at Mehta Equities, highlighted his support and resistance levels for gold and silver:
| Commodity | Support Levels | Resistance Levels |
| Gold (International) | $2,845 – $2,824 per ounce | $2,887 – $2,902 per ounce |
| Silver (International) | $31.98 – $31.78 per ounce | $32.48 – $32.69 per ounce |
| Gold (MCX – INR) | ₹84,170 – ₹83,860 | ₹84,880 – ₹85,240 |
| Silver (MCX – INR) | ₹95,050 – ₹94,350 | ₹96,350 – ₹97,250 |
What Should Investors Do Now?
Given the bullish outlook on gold, many investors are considering whether to buy, hold, or book profits. Analysts suggest a cautious approach, keeping an eye on global market trends and upcoming economic data releases.
- Short-Term Traders: Traders with a short-term perspective should watch the ₹84,800 – ₹85,100 resistance zone. A breakout above these levels may lead to further gains, while a correction could provide fresh buying opportunities.
- Long-Term Investors: With major financial institutions forecasting $3,000 per ounce gold prices in the next 12 months, long-term investors may find dips in prices as good entry points for accumulation.
- Silver Outlook: Silver is also gaining traction, with prices expected to rise further amid increased industrial demand and inflation hedging. Investors should track support levels around ₹94,000 for potential buying opportunities.
Impact of RBI’s Policy on Gold Prices
The RBI’s policy decision today will set the tone for gold prices in the Indian market. If the central bank cuts interest rates, gold prices could rise further due to increased liquidity and lower opportunity costs of holding non-yielding assets like gold.
Additionally, any indications from the RBI regarding inflation, economic growth, and future rate cuts will play a critical role in determining market sentiment. If inflation concerns persist, demand for gold as an inflation hedge could strengthen.
Conclusion: Is Gold a Good Investment Now?
With global economic uncertainties, a weakening rupee, and central banks maintaining a dovish stance, gold remains an attractive investment option. However, investors should be prepared for short-term volatility and focus on long-term gains.
As analysts predict further price appreciation, gold continues to hold its status as a safe-haven asset in uncertain times. Whether you’re a trader looking for quick gains or a long-term investor seeking portfolio diversification, gold’s upward momentum suggests that it may still have room to run.
Disclaimer: The above views and recommendations are those of individual analysts, experts, and brokerage firms. Investors are advised to conduct their own research and consult certified financial professionals before making any investment decisions.