Key Points:
- MCX gold price hits record ₹1,22,101 per 10g amid global uncertainty.
- Rally driven by strong demand, weak dollar, and Fed rate-cut hopes.
- Analysts see ₹1,25,000 target but caution short-term volatility.
MCX gold price surged to an all-time high on the Multi Commodity Exchange (MCX) on Wednesday, breaching the ₹1,22,000 mark per 10 grams for the first time. The sharp rally was driven by strong spot demand, global economic uncertainty, and expectations of interest rate cuts by the US Federal Reserve.
At around 9:10 a.m., MCX gold December futures traded 0.69% higher at ₹1,21,949 per 10 grams, after touching a record intraday high of ₹1,22,101. Silver futures for December delivery also climbed 0.73% to ₹1,46,855 per kilogram.
US gold futures followed the same trend, rising above $4,000 per troy ounce to reach a record $4,037. The precious metal has gained over 55% in 2025, making it one of the year’s top-performing assets.
Record high in early trade
Analysts attribute the rally in MCX gold price to a mix of domestic and international factors. Rising demand from central banks, continued inflows into gold-backed exchange-traded funds (ETFs), and a weakening US dollar have supported prices globally.
“Gold’s bull run may continue on rate cut hopes and political and economic uncertainties. Investors should hold their positions,” said Anuj Gupta, a SEBI-registered analyst. He expects MCX gold to reach ₹1,25,000 per 10 grams by the end of the year.
The US government shutdown, now in its seventh day, has further unsettled markets, delaying key economic reports and increasing concerns about fiscal stability. Traders are also awaiting minutes from the latest Federal Reserve meeting and remarks from Fed Chair Jerome Powell, which could clarify the timing and scale of future rate cuts.
Global cues drive momentum
The rally in MCX gold price reflects investor sentiment shifting toward safe-haven assets amid volatile global markets. Political tensions, tariff-related uncertainties, and slowing growth indicators have weakened investor confidence in riskier assets such as equities.
Gold traditionally benefits during such periods, as lower interest rates and a softer dollar make the metal more attractive to investors. The anticipation of two possible Fed rate cuts — one in October and another in December — has added to bullish momentum.
“Gold prices tend to rise in times of uncertainty and monetary easing,” said Manoj Kumar Jain of Prithvifinmart Commodity Research. “We suggest booking profits in long positions ahead of the Fed minutes and waiting for a price correction before re-entering.”
Jain added that MCX gold has technical support between ₹1,20,400 and ₹1,19,800, with resistance near ₹1,22,500. Silver, he said, faces support around ₹1,44,700 and resistance up to ₹1,48,200.
Analysts advise cautious approach
While optimism remains high, experts warn of possible volatility in the short term. A stronger-than-expected US economic rebound or delayed rate cuts could trigger profit booking among investors.
Still, the broader outlook for MCX gold price remains positive. With geopolitical risks, a softening dollar, and central bank demand likely to persist, analysts believe gold will continue to attract inflows.
“Even with intermittent corrections, the trend for gold remains upward for the rest of the year,” Gupta said.
As investors weigh whether to buy more or book profits, MCX gold price climb past ₹1,22,000 marks another milestone in a year defined by economic uncertainty and shifting global monetary policies.
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