Key Points
- Market Rebound: Gold prices stabilize after heavy losses, showing renewed strength across local and global exchanges.
- Current Rates: 24-carat gold is priced at ₹15,945 per gram, while 22-carat stands at ₹14,616 per gram as of February 5.
- MCX Volatility: Domestic futures showed positive momentum, with 24-carat trading 0.22 percent higher after hitting record intraday peaks.
- Global Influence: Profit booking at historical highs on the COMEX exchange has introduced fresh volatility into the bullion sector.
After a period characterized by a sharp decline, gold prices in India have successfully staged a robust comeback, providing significant relief to both long-term investors and retail buyers. The yellow metal recorded gains for the second consecutive day on Thursday, February 5, signaling a definitive shift in momentum after the heavy sell-offs witnessed last week.
According to data from GoodReturns, the retail price for 24-carat gold in India currently stands at ₹15,945 per gram. Buyers looking for 22-carat gold, often used for jewelry, are seeing prices of ₹14,616 per gram, while 18-carat gold is trading at ₹11,959 per gram. This upward trend suggests that the market is beginning to absorb the previous week’s shocks, as buyers take advantage of the corrected prices.
Performance on the Multi Commodity Exchange (MCX)
The domestic positive sentiment was mirrored on the Multi Commodity Exchange, where gold showed steady momentum throughout the morning session. By Thursday morning, 24-carat gold futures were trading 0.22 percent higher, hovering around ₹1,53,390 per 10 grams.
The day was marked by extreme volatility, with MCX gold earlier touching a historic high of ₹1,80,779 per 10 grams. Such price swings underline the current sensitivity of the bullion market, where speculative trading and hedging strategies are reacting rapidly to shifting economic indicators.
Global Cues and Profit Booking
The domestic rally faced some headwinds from international markets. On the COMEX exchange, gold prices retreated from their intraday peaks as profit booking emerged. After surging to a high of $5,113.50 per ounce, prices slipped into negative territory, dropping nearly $200 from the day’s peak.
Analysts suggest that this “cooling off” period is a natural reaction to the record highs reached earlier in the session. While the underlying demand for gold remains high due to its status as a safe-haven asset, the rapid appreciation has prompted many institutional investors to lock in gains, leading to the sharp intraday retreat observed on Thursday.
Background and Market Outlook
The recent recovery comes at a time of broader economic uncertainty. While last week’s slump was driven by a strengthening dollar and shifts in interest rate expectations, the current rebound highlights gold’s enduring appeal during periods of market fluctuation.
As we move forward, the focus will remain on central bank commentaries and global geopolitical developments. For now, the Indian market remains resilient, with the current price levels attracting renewed interest from domestic consumers ahead of the upcoming wedding and festive seasons.
