Gold prices were largely flat on the Multi Commodity Exchange (MCX) on Tuesday morning, with the continuous gold futures contract trading near Rs 1,41,989 per 10 grams, marginally lower by just 0.03%, indicating consolidation after a sharp rally in the previous session.
What happened earlier? Global gold hit record highs
The subdued move on MCX follows a strong overnight rally in global markets, where gold surged to fresh record levels on Monday as investors rushed into safe-haven assets.
Spot gold jumped 2.2% to $4,609.58 per ounce as of 1:38 p.m. ET, after hitting an all-time high of $4,629.94 per ounce earlier in the session. Meanwhile, US gold futures for February delivery settled 2.5% higher at $4,614.70 per ounce.
Silver also touched a fresh peak during the rally, underlining broad-based demand across precious metals.
Why did gold rally so sharply on Monday?
The rally was driven by a spike in risk aversion after uncertainty deepened over a reported Trump administration–linked criminal probe involving Federal Reserve Chair Jerome Powell, which raised concerns about political pressure on US monetary institutions.
This development unsettled global markets and boosted demand for hard assets such as gold and silver, which are traditionally viewed as hedges during periods of political and institutional uncertainty.
Why is MCX gold flat today?
Despite strong global cues, MCX gold is showing limited movement today, largely due to:
- Profit booking after the sharp run-up in prices
- Currency and timing factors, as domestic prices often lag or stabilise after overnight global moves
- A wait-and-watch approach ahead of further clarity on global political and monetary developments
For now, MCX gold appears to be consolidating near record territory, tracking global prices while investors assess whether the safe-haven momentum sustains or cools after the recent spike.