Gold futures on the Multi Commodity Exchange (MCX) climbed nearly 2% in Friday’s session, tracking strong global cues and sustained safe-haven demand. MCX gold was trading around Rs 1,58,370 per 10 grams, up over Rs 2,300, as both international and domestic factors aligned in favour of bullion.
The rally in MCX gold mirrors strength in global prices, where spot gold moved above the $5,000 per ounce mark, supported by fading confidence in U.S. assets and persistent geopolitical uncertainty. Investors continue to shift toward safe-haven assets amid concerns over global economic stability and unresolved geopolitical tensions.
A key driver remains expectations around U.S. monetary policy. Markets are widely factoring in a cautious Federal Reserve stance, with interest rates expected to remain unchanged in the near term. At the same time, expectations of two interest rate cuts in the second half of 2026 have kept bullion prices supported. Recent U.S. PCE inflation data largely met expectations, reinforcing the view that policy tightening is unlikely in the immediate future.
Geopolitical developments have also played a role. While recent developments around Greenland eased immediate tariff-related fears, broader uncertainty continues to linger, keeping safe-haven demand intact. On the fundamentals side, London gold vault holdings rose 2.24% month-on-month, reflecting sustained investor interest in physical gold.
Adding to the bullish sentiment, major global banks including Goldman Sachs, Commerzbank, HSBC, and UBS have raised their gold price forecasts for 2026, citing strong safe-haven demand, rising global debt, a weaker U.S. dollar, and increased diversification into gold. Central bank buying, led by countries such as China and Poland, has remained a key structural support.
Together, these global cues, supportive monetary expectations, and strong investment demand have pushed MCX gold higher by nearly 2%, keeping prices close to record levels in the domestic futures market.