Gold prices on the Multi Commodity Exchange (MCX) surged nearly 6% on Wednesday, hitting an all-time high of Rs 1,75,869 per 10 grams, tracking a sharp rally in global bullion markets and a powerful resurgence in safe-haven demand.
The primary trigger was a fresh spike in international gold prices, which climbed close to the $5,600 per ounce mark. Global bullion has been on a record-breaking run as investors move aggressively into safe assets amid rising geopolitical risks, policy uncertainty, and concerns over global economic stability.
One of the biggest drivers has been persistent geopolitical tension, including developments in Eastern Europe and the Middle East, alongside renewed trade and tariff-related uncertainty involving major economies. These factors have pushed investors away from risk assets and toward gold as a store of value.
Another key factor is expectations around global monetary policy. While the US Federal Reserve has kept interest rates unchanged, markets continue to price in potential rate cuts later this year. Lower interest-rate expectations weaken the US dollar and reduce the opportunity cost of holding gold, supporting higher prices.
Central bank buying has also remained strong. Official sector demand continues as countries diversify foreign exchange reserves amid growing concerns over currency volatility and rising sovereign debt levels. This structural demand has added long-term support to gold prices.
On the domestic front, the sharp move in global gold was amplified on MCX due to currency dynamics and momentum buying, leading to a swift rise in futures prices. Traders also cited short covering and fresh long positions as prices broke through key psychological levels.
While the pace of the rally has increased the risk of near-term volatility, analysts said the broader trend remains supported as long as global uncertainty, geopolitical risks, and policy ambiguity persist.
Gold’s 6% jump on MCX reflects not just a one-day move, but a continuation of a powerful global trend that has pushed the metal to record highs both internationally and in India.
