Gold prices on the Multi Commodity Exchange (MCX) edged higher on February 18, with the continuous contract trading at Rs 1,52,804 per 10 grams (per dag), up Rs 1,386 or 0.92% as of 09:09 AM.
The uptick follows a sharp overnight correction in international markets, where front-month gold futures had declined 2.8%, prompting a likely technical recovery in early trade. Spot gold was last seen 0.2% higher at around $4,889.36 per ounce.
Technical rebound amid thin liquidity
Market participants attributed the recovery to short-term bargain buying after the previous session’s steep fall. Thinner liquidity conditions, as several major markets remain closed due to holidays, have also amplified short-term price swings.
Analysts note that reduced participation can exaggerate volatility, leading to sharper moves on either side.
Broader outlook remains supported
Despite the recent correction, the broader outlook for gold remains largely intact. Ongoing geopolitical uncertainties in Eastern Europe and the Middle East continue to underpin safe-haven demand. While diplomatic efforts are underway, concrete resolutions remain uncertain, sustaining risk sentiment.
Gold is also being influenced by global macro cues, including U.S. dollar movement and Treasury yields, which continue to shape near-term price direction.
The rise in MCX gold reflects a mix of technical recovery and continued safe-haven interest amid global uncertainties.