For many Indians, gold is more than just a metal. It is tradition, emotion and a trusted savings option, especially during weddings. But lately, the yellow metal has not seen the kind of sharp price rally many expected. Even as global tensions remain high, buying activity appears subdued after Prime Minister Narendra Modi urged people to for a year amid rising economic pressure.
At around 11:30 am, MCX was trading at Rs 1,53,850, up slightly by Rs 183. While prices remain elevated, the pace of movement has slowed, with traders closely watching global developments and domestic sentiment.
Prime Minister Narendra Modi’s recent appeal asking Indians to avoid buying gold for weddings for one year may have sounded surprising at first. In a country where gold is closely tied to celebrations, family traditions and long-term savings, the suggestion has sparked conversations.
However, the message comes against a larger economic backdrop. India is dealing with pressure from rising crude oil prices and uncertainty linked to tensions in West Asia. Concerns around the Strait of Hormuz, one of the world’s busiest oil shipping routes, have added to worries over energy supplies and import bills.
Since India imports both crude oil and large quantities of gold, higher purchases can put additional strain on the country’s foreign exchange reserves and weigh on the rupee.
Even though physical demand may have slowed, market experts say from global uncertainty.
Ponmudi R, CEO of Enrich Money, believes MCX Gold is showing renewed strength after breaking out of a recent consolidation phase.
“MCX Gold opened with a gap up and is trading near the Rs 1,54,000 zone, breaking out of the recent consolidation range and trading above the ascending trendline with renewed bullish momentum. Immediate resistance stands at Rs 1,54,750–Rs 1,55,000; a sustained move above this level could extend the rally toward Rs 1,55,500–Rs 1,56,000,” he said.
He added that Rs 1,53,000 remains an important support level. If prices fail to hold above it, gold could slip back into the Rs 1,51,500–Rs 1,53,500 range. Still, Ponmudi believes the near-term outlook remains “cautiously bullish”, helped by safe-haven demand amid rising geopolitical tensions.
According to Gaurav Garg, research analyst at Lemonn Markets Desk, recent price swings in gold and silver are being influenced by multiple factors at the same time.
“The recent volatility in gold and silver markets can be attributed to a mix of geopolitical risks and technical trading patterns, with investors balancing these factors against expectations of forthcoming economic data,” Garg said.
In simple terms, investors are currently caught between fear and caution. On one hand, global uncertainty is supporting gold prices. On the other, traders are waiting for fresh economic signals before making aggressive bets.
Dr Ravi Singh, Chief Research Officer at Master Capital Services Limited, said MCX Gold June futures continue to hold a positive trend.
“MCX Gold June futures maintained their upward trajectory, closing at 153,663, up 0.74%, as the metal capitalises on its recent breakout. This advance reinforces the bullish structure, with prices now holding firmly above the 153,000 level,” Singh said.
He said that technical indicators continue to support a ‘buy on dips’ approach, with immediate support around the Rs 1,52,000 level and resistance near Rs 1,55,300.
Singh also pointed to broader global factors helping gold prices stay firm. A softer US dollar, stable Treasury yields and ongoing tensions in the Middle East are continuing to support demand for gold as a safe-haven asset.
For now, gold appears to be moving in a narrow range, caught between weaker domestic buying interest and strong global support. PM Modi’s comments may have cooled some demand, especially around wedding purchases, but geopolitical uncertainty is still keeping the metal in focus.
The next few sessions may depend on whether global tensions worsen and if gold manages to hold above key support levels. For investors, experts suggest keeping an eye on both international developments and price movements before making fresh decisions.