Gold prices today jump to record high in India. Check out latest rates

Gold, being a non-yielding asset, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion.

“COMEX gold Feb futures saw another leg of gains in the previous week and were marginally up, notching a fresh 9-month high of $1949.8 per troy ounce. Chinese holiday on account of the Lunar New year limited price volatility. Data from the US revealed that the economic activity in the private sector continued to contract in early January, with S&P Global Manufacturing PMI and Services PMI coming at 46.6 and 46.8, respectively. US GDP and PCE price index released later in the week further aided sentiments for the yellow metal. A slew of central bank meetings are lined up for the week and the FOMC meeting will be in the spotlight,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities Ltd.

Traders will also be keeping an eye on India’s Union Budget to be presented, also on February 1. 

“We expect gold and silver to remain volatile this week ahead of the Union Budget and the U.S. Fed meeting outcome. Gold has support at $1917-1905 while resistance is at $1942-1954. Silver has support at $23.52-23.35, while resistance is at $23.98-24.15. In rupee terms, gold has support at ₹56,750-56,610, while resistance is at ₹57,140, 57,280. Silver has support at ₹67,850-67,320, while resistance is at ₹68,950–69,480,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

The International Monetary Fund or IMF is also scheduled to release its world economic outlook today. 

The European Central Bank (ECB) and the Bank of England (BoE) are also having policy meetings this week. (With Agency Inputs)