Gold slips below key levels but is still poised for a historic monthly rise

Thekabarnews.com—People think the Fed will be hawkish, which is why gold prices are going down. However, they are going to have their best monthly rally since 1999.

On Friday, January 30, the price of gold fell sharply as investors reacted to rumors that the next head of the US Federal Reserve would be more hawkish about monetary policy. Some people started to sell when the mood changed after a strong rise.

Gold is still on track for its biggest monthly gain since 1999, even if it falls back. This is because people are buying it as a safe haven because of uncertainty in the economy and politics. 

Earlier this week, gold prices on the Multi Commodity Exchange of India (MCX) hit record highs of almost ₹1.83 lakh per 10 grams. Since then, they have gone down. 

Analysts said that the correction in the US market was like what was going on around the world. Investors were selling stocks to make money after prices went up quickly.

According to Manav Modi, a commodities analyst at Motilal Oswal Financial Services, “Gold and silver prices fell because the US dollar rose, which led to aggressive profit-taking.” 

He also said that prices at home fell more than prices abroad. As a result, people worried about price parity when the dollar/rupee exchange rate hit record highs.

The price of COMEX gold futures for April delivery dropped by over 2% during Asian trading. This brought the price down to about US$5,236 per ounce on the global market. 

Before important US economic data came out, like the Producer Price Index (PPI), traders were still being careful. That data could change how people think about future interest rates and the direction of monetary policy.

The World Gold Council (WGC) also said that central banks bought less gold in Q4 2025. But big investments helped make up for the slowdown. 

WGC also said that India’s gold imports might go down this year because prices are at an all-time high. This means people in the world’s second-largest gold consumer do not want as much jewelry.

Experts say that even though the price of gold has gone down recently, long-term structural factors are still favorable for the metal. Gold is likely to stay popular with investors because the global economy is still uncertain. There are still geopolitical risks, and people want safe-haven assets.

Gold is still important as a hedge against volatility while the markets wait for clearer signals from US officials.