Gold prices staged a sharp recovery on Sunday after witnessing heavy selling pressure earlier in the session. On the Multi Commodity Exchange (MCX), gold futures rebounded nearly 6% from intraday lows, climbing back close to the Rs 1.45 lakh level after hitting lower circuit levels during the special Budget Day trading session.
The recovery came after gold had plunged as much as 9% earlier in the day amid aggressive profit-booking following a prolonged record rally. Traders said panic selling eased once prices approached key support levels, prompting bargain buying and short covering.
Market participants also pointed out that volatility remained elevated as commodities were trading on a Sunday alongside equities due to the Union Budget 2026 presentation, leading to sharp price swings and thinner liquidity.
Globally, gold prices were pressured by a stronger US dollar and rising bond yields, while sentiment was also impacted after US President Donald Trump named Kevin Warsh, considered hawkish on interest rates, as his choice for Federal Reserve Chair. However, ongoing global uncertainty and safe-haven demand helped gold recover from lower levels.
Traders cautioned that prices may continue to fluctuate through the session as the special trading window remains open.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market and commodity investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
