Gold prices surged sharply on the Multi Commodity Exchange (MCX) on Monday, rising over 2% in late trade as the global rally in the yellow metal intensified. MCX gold futures were trading around Rs 1,42,001 per 10 grams, up nearly Rs 3,200, reflecting strong buying interest across domestic markets.
The sharp move in MCX gold closely tracked global prices, where gold crossed the $4,600 per ounce mark for the first time ever. The rally began early in the Asian session and gathered pace through European and US hours, driven by heightened safe-haven demand amid rising geopolitical tensions and growing expectations of interest rate cuts in the United States.
Escalating geopolitical risks, particularly in the Middle East, have pushed investors toward safe-haven assets such as gold. Concerns over political instability, warnings of potential military action, and broader global uncertainty have all contributed to increased demand for precious metals.
In addition, softer US economic data has strengthened expectations that the US Federal Reserve may begin cutting interest rates later this year. Recent employment data indicated slowing job growth across key sectors, reinforcing the view of a cooling labour market. Lower interest rates typically support gold prices, as the non-yielding metal becomes more attractive compared with bonds and other yield-generating assets.
The strong rally in MCX gold highlights sustained bullish sentiment in the domestic market, supported by global cues, currency movements, and safe-haven flows. Market participants are now closely watching geopolitical developments and upcoming US macroeconomic data for further direction in gold prices.
