Gold price crash or correction? What’s behind the sudden fall in MCX rates

Gold prices fell sharply in India and global markets as US-Iran tensions, strong dollar, and profit-booking hit sentiment. MCX gold slipped below ₹1.58 lakh, with international rates also declining.

New Delhi: Gold prices witnessed a decline in domestic and global markets on Monday as geopolitical tensions between Iran and the United States, a stronger dollar, and profit-booking by investors continued to influence sentiment.

On the Multi Commodity Exchange (MCX), 24-carat gold futures fell by 0.41% or ₹653, settling at ₹1,57,894 per 10 grams. The metal had closed at ₹1,58,547 in the previous trading session, reflecting continued volatility in bullion markets.

Domestic bullion rates also decline

According to the All India Sarafa Association, 24-carat gold in Delhi slipped to ₹1,62,000 per 10 grams, including taxes. Meanwhile, data from GoodReturns showed prices at ₹1,57,080 per 10 grams, while the Indian Bullion and Jewellers Association (IBJA) reported levels around ₹1,58,210 per 10 grams in early trade.

The variation across platforms highlights ongoing fluctuations in retail and wholesale gold pricing across India.

Sharp drop after recent profit booking

Gold had already seen pressure in the previous trading session, falling sharply due to a stronger US dollar and heavy profit-booking by traders. On Friday, 99.9% pure gold dropped by ₹3,200 or 1.93%, closing at ₹1,62,000 per 10 grams.

This followed a further decline from Thursday’s level of ₹1,66,000, indicating sustained selling pressure in the bullion market.

Global gold market weakens

International markets also mirrored the downward trend. Spot gold fell by $104 or 2.24% to $4,548.46 per ounce. On the New York COMEX, June gold futures dropped by $112.75 or 2.41% to $4,572 per ounce.

Trading volumes remained active, with nearly 7,714 lots exchanged during the session, reflecting high investor participation amid volatility.

MCX futures and market activity

On MCX, June delivery contracts declined by ₹2,880 or 1.78% to ₹1,59,098 per 10 grams. Market analysts attributed the weakness to a combination of global risk-off sentiment and strengthening dollar index pressures.

City-wise gold prices across India

Gold rates remained broadly aligned across major Indian cities. In Delhi, Mumbai, Kolkata, Bengaluru, and several northern cities, 24-carat gold hovered around ₹1,56,930 to ₹1,57,080 per 10 grams. Chennai remained slightly higher at ₹1,60,910 per 10 grams due to local demand factors.

Market outlook remains volatile

Analysts suggest that gold will continue to react to global geopolitical developments, dollar movement, and investor sentiment in the near term. Safe-haven demand may provide intermittent support, but volatility is expected to persist.