Gold prices witnessed a sharp recovery on the Multi Commodity Exchange (MCX) on Sunday after an intense sell-off earlier in the session. After hitting the lower circuit and falling close to 9% during early trade, gold futures rebounded strongly, recovering nearly 4% from the day’s lows as panic selling eased and bargain buying emerged at lower levels.
At the time of the latest update, MCX gold futures were trading around Rs 1,42,100 per 10 grams, down about 5% from the previous close but well off the session’s lowest levels. The rebound came after heavy profit-booking triggered a sharp decline following a prolonged record rally in gold prices over recent weeks.
Market participants attributed the initial fall to a combination of aggressive profit-booking, a stronger US dollar, rising bond yields, and concerns around global monetary policy after the announcement of a hawkish US Federal Reserve chair pick. The recovery, however, suggests that broader fundamentals remain supportive, with buyers stepping in after the steep correction.
Traders also noted that volatility remained elevated as the commodity market was open on a Sunday due to the special trading session held on account of the Union Budget. With both equity and commodity segments open, price movements may continue to fluctuate through the session as liquidity remains thinner than usual.
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