Gold stays strong above Rs 1.30 lakh, silver slides on heavy profit‑booking. What’s the outlook for precious metals?

Gold prices opened firm on Tuesday, holding above the Rs 1.30 lakh mark as the February 5, 2026, futures contract began the session at Rs 1,30,333 per 10 grams, down Rs 319 or 0.24%.

Silver, however, saw sharper profit booking from recent highs, with the March 5, 2026, futures contract opening at Rs 1,78,999 per kg, declining by Rs 3,031 or 1.67%.

Gold prices edged lower in early Asian trading on Tuesday, following a six-week peak in the previous session, as investors booked profits while awaiting remarks by the Federal Reserve Chair and key economic data for interest rate cut cues.

Internationally, spot gold fell 0.2% to $4,222.93 per ounce, as of 0024 GMT, after hitting its highest level since October 21 on Monday. U.S. gold futures for December delivery were down 0.4% at $4,256.30 per ounce.

U.S. rate futures are pricing in an 88% chance of a rate cut in December, according to the CME’s FedWatch tool. Like U.S. President Donald Trump, Hassett believes rates should be lower.

Non-yielding gold tends to perform well in low-interest-rate environments.

Investors are also focusing on key data this week, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, due Friday.

The US Dollar Index, DXY, was hovering near the 99.43 mark, gaining 0.02, or 0.02% on Tuesday.

“With Fed’s rate-cut expectations strengthening and U.S. debt levels sitting near historic peaks, safe-haven demand has remained robust. The pace of recovery in gold continues to surprise on the upside, even as Russia-Ukraine peace hopes emerge — reflecting the strong positioning by global central banks and institutional buyers,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Trivedi believes that gold may continue to trade in a broader positive range between Rs 1,28,000 and Rs 1,34,000.

Another commodities expert, Rahul Kalantri, VP Commodities, at Mehta Equities, stated that gold has support at Rs 1,29,650-1,28,850 while resistance is at Rs 1,31,450-1,32,100.

Further, silver has support at Rs 1,80,750-1,79,200 while resistance is seen at Rs 1,83,110, 1,84,300.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 94,928/8 grams while pure gold (24 carat) prices stand at Rs 1,02,176/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 94,944/8 grams while pure gold (24 carat) prices stand at Rs 1,02,192/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 94,400/8 grams, while pure gold (24 carat) prices stand at Rs 1,01,560/8 grams.

Also read: Silver soars to record Rs 1,78,649. What powered the rally and how close is Rs 2 lakh target?

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 94,576/8 grams while pure gold (24 carat) prices stand at Rs 1,01,768/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)