Gold prices on the Multi Commodity Exchange (MCX) surged sharply on Wednesday, with Gold futures (GOLD1!) rising nearly 5% to ₹157,850 per 10 grams, tracking a powerful global rally in bullion prices and elevated domestic risk premiums.
The move mirrors a fresh spike in international gold prices, where spot gold climbed to new record highs near $4,850 per ounce, driven by escalating geopolitical tensions and renewed volatility across global markets. Investors shifted decisively toward safe-haven assets amid fears of widening US–Europe trade friction following tariff threats by Donald Trump linked to Greenland-related disputes.
A sharp weakening of the US dollar further supported the rally. The greenback slipped to a near two-week low as investors revived the so-called “Sell America” trade, boosting demand for non-yielding assets like gold. At the same time, global bond markets remained under pressure, with rising yields in Japan and Europe unsettling risk sentiment.
Domestic factors amplify MCX rally
In India, the surge in MCX gold was amplified by rupee weakness, elevated rollover costs, and tight near-month supply conditions. Traders noted that aggressive buying in the futures segment, combined with expensive rollovers, pushed domestic prices higher than global benchmarks on a percentage basis.
Market participants also pointed to persistent hedging demand ahead of macro uncertainty, with bullion continuing to act as a portfolio hedge amid volatile equity and currency markets.
Fed outlook caps risks but trend remains bullish
While expectations of aggressive rate cuts by the Federal Reserve have moderated, this has done little to cool gold’s momentum so far. Ongoing geopolitical uncertainty, trade tensions, and concerns around fiscal stability globally continue to underpin bullion prices.
Traders are now closely watching upcoming US macro data, including inflation and growth readings, for cues on monetary policy direction. Until then, analysts say gold’s safe-haven appeal remains firmly intact, with MCX prices reflecting both global strength and local market stress.
