Gold prices opened the evening session on a cautious note, reflecting a familiar tug of war between profit booking and global cues. Traders on the Multi Commodity Exchange (MCX) saw prices move in a narrow range as a firmer US dollar and easing geopolitical concerns kept sentiments mixed.
The overall tone remained watchful rather than reactive, with markets pausing after the recent sharp run-up in gold prices.
Market Performance: MCX gold trades choppy
Gold rates remained volatile on MCX during Thursday’s evening trade, January 15, as traders booked profits at higher levels.
- MCX gold February futures initially rose around 0.20%
- The gains faded quickly, pushing prices into negative territory
- Around 5:30 pm, gold was trading flat at ₹1,43,144 per 10 grams
The movement highlighted hesitation among participants after the recent rally, with no aggressive buying support emerging at higher levels.
Global cues weigh on gold prices
International gold prices also slipped, mirroring the trend seen on MCX.
- US gold futures for February delivery fell over 1%
- Prices dropped to $4,584.70 per ounce
- The US dollar index edged up by nearly 0.10%
A stronger dollar typically makes gold more expensive for overseas buyers, often leading to temporary pressure on prices. This dynamic played out clearly during the session.
Profit booking dominates after recent rally
Gold’s recent surge has been largely driven by geopolitical tensions and global uncertainty. However, the evening trade reflected a pause, as traders chose to lock in gains.
Easing tensions on the global front further reduced the urgency to hold safe-haven assets. According to media reports, US President Donald Trump indicated that killings in Iran had stopped and suggested the US would observe developments before deciding on any further response.
This shift in tone reduced immediate risk concerns, prompting traders to trim positions in gold.
Geopolitical cooling impacts safe-haven demand
For much of the past year, geopolitical risks have been a strong pillar supporting gold prices. Any signs of stability tend to cool safe-haven buying, even if temporarily.
During Thursday’s session, markets reacted to:
- Reduced fears of near-term military escalation
- Signs of diplomacy over confrontation
- Calmer risk sentiment across asset classes
As a result, gold prices struggled to hold onto early gains despite remaining close to record levels.
Dollar strength adds pressure
Another key factor behind gold rates turning volatile on MCX was the mild rise in the US dollar.
Even a modest uptick in the dollar often impacts precious metals, especially when prices are already elevated. Traders remained sensitive to currency movements, adjusting positions quickly as the dollar firmed up.
The session showed how closely gold continues to track dollar movements in the short term.
Gold remains supported despite near-term volatility
While the session saw profit booking, the broader structure of gold prices remains influenced by macro uncertainty, central bank activity, and global risk sentiment.
Recent market behaviour shows that gold is not just responding to safety demand but also reacting sharply to:
- Changes in the US dollar
- Shifts in interest-rate expectations
- Movements in global equity markets
This explains why gold rates can swing within a tight range even without fresh triggers.
Summary: What today’s gold movement signals?
Gold rates volatile on MCX once again underlined how sensitive prices are near peak levels. Thursday’s trade was less about panic and more about consolidation.
To sum up the session:
- MCX gold hovered near ₹1,43,144 per 10 grams
- US gold futures slipped to $4,584.70
- Profit booking followed the recent rally
- A firmer dollar and easing geopolitical tension capped gains
Gold continues to trade with a cautious tone, balancing between global uncertainty and periodic profit-taking. As long as prices stay elevated, such volatile sessions driven by short-term cues are likely to remain a regular feature of the market.
Source: Livemint
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