Gold prices in India surged to a fresh record high on Wednesday, with MCX gold futures jumping nearly 6% to Rs 1,75,869 per 10 grams, tracking a powerful rally in global bullion markets.
The sharp rise in domestic prices came amid a renewed surge in international gold, where spot prices climbed close to the $5,600-per-ounce mark, supported by strong safe-haven demand. Gold has been rallying globally as investors respond to escalating geopolitical tensions, policy uncertainty, and growing concerns over global economic stability.
Internationally, bullion crossed the psychological $5,000 level earlier this week and has continued to extend gains. Analysts said the rally is being driven less by short-term events and more by a sustained backdrop of uncertainty, including tensions in Eastern Europe and the Middle East, concerns over global trade fragmentation, and rising fiscal risks in major economies.
Expectations of easier monetary conditions have also supported gold. While the US Federal Reserve has kept interest rates unchanged, markets continue to price in possible rate cuts later this year, pressuring the dollar and boosting the appeal of non-yielding assets such as gold.
Another key pillar has been strong central bank demand, with official sector buying remaining elevated as countries diversify reserves away from traditional currencies. Investment flows into gold-backed products and steady physical demand from Asian markets have further underpinned prices.
The global rally translated into an amplified move on MCX, supported by currency factors and firm domestic demand. While the pace of gains has raised the risk of near-term volatility, market participants said the broader outlook for gold remains supported as long as global uncertainty persists.
Gold prices have now risen sharply so far in 2026, extending last year’s strong performance and reinforcing the metal’s role as a preferred hedge during periods of heightened global stress.
