Gold prices have been fluctuating sharply, shifting directions within hours. At one point during the day, prices may surge, while at another, they drop significantly. This instability in the MCX Gold Rate has left many investors uncertain and worried about their next move.
Earlier in the day, gold prices showed positive momentum, but by afternoon, the trend reversed sharply, triggering concerns and panic among investors. Many are now uneasy about the unpredictability of gold’s performance.
What Factors Influence Gold Prices?
Gold is a precious commodity, and its price is influenced by several factors that cause frequent changes throughout the day. These include:
- Global economic policies
- Investor sentiment
- Wedding and festival seasons in India
- Market demand and supply trends
A rise in gold prices often reflects an increase in investor demand, seasonal buying during weddings, or purchases made during auspicious occasions.
Trade Wars Behind Recent Volatility
One of the key reasons for recent ups and downs in gold rates is the ongoing international trade and tariff tensions. When the United States imposed reciprocal taxes on imports, it triggered a surge in global gold prices. However, as trade war concerns eased, gold prices began to decline.
That said, rising uncertainties in global markets have caused gold prices to spike again recently.
Gold’s Record-Breaking Rally
Since the beginning of this year, gold prices have been on a steady upward trajectory. Starting around ₹76,000, prices soared, reaching a record high on April 22, when gold crossed ₹1 lakh in local bullion markets. On the MCX, the futures price touched ₹99,358 per 10 grams, marking an all-time high.
The Downturn Begins: April 23 Onward
Just a day after hitting its peak, gold prices started to fall. From April 23, the value dropped significantly, hitting a low of ₹90,890 per 10 grams on the MCX. Although the market has since recovered slightly, gold still remains well below its all-time high.
Sudden Dip on Thursday
On Thursday, gold prices were showing steady gains until an unexpected afternoon dip. The day opened with gold priced at ₹96,214 per 10 grams, compared to ₹95,599 the previous day. However, by midday, the price had fallen to ₹95,221 per 10 grams.
The highest price during the day was ₹96,383, but by 4:53 PM, gold was recorded at ₹95,480 per 10 grams, marking a decline of ₹119 or -0.12%.
Uncertain Outlook Continues
Despite temporary recoveries, gold prices remain volatile, and investors are still navigating uncertain territory. With global markets in flux and no clear signals ahead, gold may continue to experience sharp movements in the near term.
