Gold prices experienced a significant recovery on Monday, with MCX Gold futures rising ₹800 to ₹1,59,356 per 10 grams in volatile trading, according to The Economic Times. The yellow metal appreciated 0.5 per cent in the domestic market, marking a notable turnaround from earlier declines. In overseas markets, Comex gold futures for June contract were trading marginally lower at $4,551.10 per ounce, down $10.80 or 0.24%. As per Motilal Oswal Financial Services analyst Manav Modi, gold prices had slipped to a one-and-a-half-month low due to multiple pressures, but the recent recovery reflects renewed market dynamics.
The latest price movement comes as the rupee fell to fresh record lows of 96.18 against the dollar, providing significant support to domestic gold prices despite global softness, according to The Economic Times. This rupee weakness has helped cushion downside pressure even when Comex prices remain volatile. Jateen Trivedi, Vice President at LKP Securities, noted that MCX gold is witnessing signs of base formation near the ₹1,58,000 – ₹1,58,500 zone after recent corrective pressure, with prices showing early recovery indications from lower levels.
The price recovery comes amid escalating tensions in West Asia, which continue to provide underlying support to gold prices despite broader market pressures. According to The Economic Times, uncertainty surrounding trade relations, Middle East tensions, and expectations around future US rate cuts continue to support safe-haven demand. Geopolitical uncertainty typically supports gold prices, and the ongoing conflict affecting Gulf energy infrastructure continues to provide support, even as the inflationary impact of elevated crude prices reinforces tighter monetary policy expectations.
From a technical perspective, gold is holding above immediate support near ₹1,58,000 while intraday recovery attempts are visible near the lower band structure, as reported by LKP Securities. The current chart setup indicates that if prices sustain above the ₹1,58,500 zone, short covering momentum can push Gold towards ₹1,60,500 initially, followed by ₹1,62,000 in the near term. On the downside, strong support is placed near ₹1,56,500 – ₹1,56,000, which becomes an important positional support area for bulls. The MACD histogram is showing signs of recovery from deeply negative territory, while the Balance Volume indicator is stabilizing after recent decline, indicating selling pressure is gradually cooling off.
Looking ahead, investors will focus on preliminary PMI data from major economies, US housing data, and China's loan prime rate decision for further cues on growth and inflation trends, according to Motilal Oswal Financial Services. The EMA 8 is attempting to stabilise near current market levels while prices are trying to regain strength above short-term moving averages. Fundamentally, markets continue to track US inflation expectations, Federal Reserve commentary, and geopolitical developments globally, with uncertainty surrounding trade relations and Middle East tensions providing ongoing support to gold prices.
