Gold Prices Today: Yellow metal gains even as dollar index hits new 52-week high; prices near Rs 78,000/10 gm

Gold futures climbed on January 3, driven by robust fund flows and disappointing global manufacturing data. On the Multi Commodity Exchange (MCX), February gold futures rose 1.07 per cent to settle at Rs 77,719 per 10 grams. This upward movement came despite the US dollar surging to a fresh fifty-two-week high, signalling strong investor demand for safe-haven assets at the start of the year.

Global cues fuel optimism
The rally in gold futures aligns with global trends, as spot gold hovered near $2,656 per ounce, up 1.2 per cent. Disappointing manufacturing PMI data from China, which fell to its slowest pace of growth since October, alongside weak PMI numbers from the Eurozone, added to the appeal of gold as a hedge against economic uncertainty.

Technical outlook for MCX gold futures
MCX gold futures have shown resilience, trading higher than key short-term moving averages, including the 5-day, 10-day, and 50-day averages, while lagging behind longer-term indicators like the 100-day and 200-day averages. The Relative Strength Index (RSI) at 52.6 indicates neutral momentum, suggesting further potential for upward movement.

Factors supporting futures performance
Gold futures are benefiting from a combination of factors, including declining gold ETF holdings over the past year, signalling reduced speculative pressures, and China's increased gold imports via Hong Kong, which doubled in November. Additionally, concerns over the Chinese yuan's weakness and the US Federal Reserve's rate trajectory are underpinning the metal’s performance.

Outlook: Buy on dips for medium-term gains
Analysts recommend buying gold futures on dips, targeting resistance levels at Rs 78,000 and Rs 79,000. Support levels are seen at Rs 77,000 and Rs 76,000, offering a clear range for traders. However, caution is advised as thin liquidity conditions could amplify price volatility in the short term.

Gold futures’ steady rise amid challenging global conditions underscores its enduring status as a reliable investment choice for 2025.