Source: Reuters
Domestic gold prices have spiked in recent days, nudging very close to the record highs. On Friday, MCX gold settled at ₹96,535 per 10 grams—up ₹3,835 from the previous week’s close of ₹92,700 – a 4% gain over one week. The current price is only ₹2,800 from the all-time high of ₹99,358 per 10 grams.
Due to rupee fall and excess uncertainty
The rally in Indian gold prices has been largely attributed to the Indian rupee’s depreciation, which fell more than 1% last week. Spot gold on a global level increased, meanwhile, nearly 2.65%. This instance speaks to how currency fluctuations influence domestic rates.
Expert Views
Market experts cite economic uncertainties still exist. Sugandha Sachdeva, Founder of SS WealthStreet said, “The US Fed’s decision to maintain interest rates at 4.5% at its recent policy meeting reflects ongoing economic uncertainties, owing to the impact of tariffs on the US economy, which boosted gold’s appeal as a safe-haven asset. Similarly, the Bank of England’s rate cut of 25bps to 4.25% has further supported gold prices.” Further bolstering gold prices was the Bank of England’s 25 basis point rate cut to 4.25%.
Safe-Haven Demand Increases Amid Geopolitical Uncertainty
Geopolitical uncertainty is also contributing to the volatility. The United States has recently imposed tariffs on foreign produced films and warned of the same kind of tariffs to the pharmaceutical sector as well. While this is occurring, an increase in domestic demand has occurred for gold because of rising tensions between India and Pakistan.
Sugandha Sachdeva said, “Apart from these key policy meetings during the week, overall tariff uncertainty still looms as the US announced tariffs on foreign-produced movies and threatened to impose tariffs on the pharma sector, heightening market volatility and increasing demand for gold. Additionally, rising India-Pakistan tensions contributed to gold’s safe-haven demand, particularly in the domestic market. Any major depreciation in the Indian rupee due to these escalating geopolitical risks could lead to additional gains in the domestic markets.”
Trade Talks, Dollar Index, and Near-Term Triggers
According to, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, “The US dollar index edged lower to around 100 on Friday, after two straight sessions of gains, as traders looked ahead to US-China trade talks scheduled for the weekend. President Trump expressed optimism and expects the negotiations to yield tangible progress. Meanwhile, the newly announced US-UK trade deal provided some relief to investors hoping for a de-escalation in global trade tensions.”
Jateen Trivedi, VP Research — Commodity & Currency at LKP Securities, said, “Gold price today is oscillating between ₹95,750 and ₹96,750 on the MCX, largely influenced by sharp movements in the Indian rupee. On the global front, Comex gold price eased as market sentiment turned optimistic following trade-related announcements between the US and Europe, along with the possibility of renewed trade talks between the US and China.”
On triggers that may dominate gold rates in the near-term, Jigar Trivedi of Reliance Securities said, “Market attention will continue on US trade negotiations, followed by key data including the inflation rate, retail sales, and speeches from Federal Reserve officials, notably Chairman Jerome Powell.”
“Upcoming US-China trade talks scheduled for the weekend introduce uncertainty. A positive outcome may ease market fears, potentially capping gold’s gains. At the same time, if talks collapse, that could trigger a rally in gold prices,” said Sugandha, adding, “For the next week, upcoming US economic data like US CPI, PPI, and Eurozone GDP could impact global market sentiment and also provide cues for the precious metal
Price Forecast: Volatility Likely to Persist
Here are some valuable insights on MCX gold rates today from Sugandha Sachdeva of SS WealthStreet stating, “Technical set-up indicates that gold prices are taking support at the ₹94,500 and ₹92,000 per 10 gm level, while key hurdle for gold is seen at the ₹97,500 per 10 gm mark. A breach of the same shall take the prices to ₹98,780 per 10 gm mark and could even test previous record high levels of ₹99,358 per 10 gm. On the international front, gold prices are finding strong support at the $3,280 per ounce mark. If prices continue to trade above this level, we may see the precious metal reach the $3,380 to $3,420 levels.”
City Wise Gold Rates Today
The following are the current gold prices in key Indian cities, with support from the India Bullion Association (IBA):
- Delhi: ₹96,540/10 gm
- Mumbai: ₹96,710/10 gm
- Bengaluru: ₹96,780/10 gm
- Chennai: ₹96,990/10 gm
- Kolkata: ₹96,580/10 gm
Is It The Right Time To Buy Gold?
Prices are at or near record highs, so caution continues to be recommended. As always, gold is a popular asset during uncertain times, and while gold prices could continue to rise, they could also correct themselves if the world calms down or if the rupee strengthens.
Jateen Trivedi of LKP Securities said,
“While trade optimism is exerting pressure on gold, ongoing border tensions and shifting geopolitical narratives continue to lend support. In the near term, gold price will likely remain range-bound between ₹94,500 and ₹97,500, with heightened volatility expected as risk sentiment continues to fluctuate.”
Disclaimer: The opinions and suggestions presented in this article are solely those of the individual analysts. Investors should consult certified financial professionals prior to any investment decisions.
