Gold prices jumped sharply on the Multi Commodity Exchange (MCX) on Wednesday, rising close to 2%, as a fresh wave of global and domestic factors reignited safe-haven demand for the yellow metal.
The rally came after international gold prices briefly surged to a record high of around $5,220 per ounce on January 28, before stabilising near $5,205 per ounce, up over 2.3% from the previous close. The sharp move in global markets directly lifted domestic prices, pushing MCX gold futures higher in early trade.
A key driver behind the surge is heightened geopolitical tension, particularly renewed friction between the United States and NATO over Greenland, along with the ongoing conflicts in Ukraine and Gaza. These developments have reinforced gold’s role as a hedge against geopolitical uncertainty. Additionally, reports related to the US capture of the Venezuelan President and fresh trade threats by the US President, including a 100% tariff warning on Canada if it enters a trade agreement with China, have further unsettled global markets.
Another major factor supporting gold prices is expectations around US Federal Reserve policy. Markets remain optimistic about potential rate cuts later this year, even as the Fed is widely expected to keep rates unchanged in the near term. Lower interest rate expectations tend to boost gold by reducing the opportunity cost of holding non-yielding assets.
On the domestic front, MCX gold had already been trading near elevated levels, having hit a peak of Rs 1,59,226 per 10 grams on January 23, 2026. With global prices scaling fresh highs again, domestic futures reacted swiftly, leading to today’s near-2% jump.
Overall, the latest rise in MCX gold prices reflects a combination of record global prices, escalating geopolitical risks, trade uncertainty, and sustained expectations of easier US monetary policy, all of which continue to keep bullion demand strong.
