Gold futures exhibited resilience in the prior session, closing with a gain of 0.7% at Rs 139,083 as investors gravitated towards safe-haven assets in response to escalating geopolitical tensions in Venezuela, triggered by the US military operation and the capture of President Nicolas Maduro. The prevailing uncertainty bolstered demand for bullion, underscoring gold’s function as a hedge against crises in anticipation of significant US labor market data, notably the December jobs report scheduled for release later this week.

Minneapolis Fed President Neel Kashkari’s remarks regarding the persistence of elevated inflation and the ongoing risk of rising unemployment have fostered a cautious stance in the market, despite interest rates nearing a neutral level. Broader forecasts have shifted to a positive outlook, as major banks have raised their long-term gold price targets through 2026, driven by anticipated steady demand, declining real yields, and ongoing global uncertainties.

UBS has recently updated its projections, anticipating that gold could reach approximately $5,000 per ounce by 2026, with a potential upside to $5,400 per ounce if political or financial risks intensify. Physical demand trends in Asia indicated that gold was trading at premiums in significant hubs. In India and China, premiums have resurfaced as spot prices adjusted from their recently set record highs, indicating a resurgence in retail interest.

From a technical perspective, the current price movement is primarily influenced by short covering, as evidenced by a 0.52% decline in open interest to 14,868 contracts, despite a price increase of Rs 963. Immediate support is positioned at Rs 138,340; a breach below this threshold could reveal the Rs 137,595 level. Resistance is currently positioned at Rs 139,490, and a sustained breach above this level may lead to gold approaching the Rs 139,895 region.