MCX Gold price slips Rs 1,140 in a day. Has the safe-haven shine started to fade?

Gold prices eased on Wednesday, December 31, with MCX gold futures falling by Rs 1,140 or 0.8% from their previous close of Rs 1,36,666 to touch an intraday low of Rs 1,35,526. The decline followed a period of sharp volatility triggered by heightened geopolitical tensions, which had lifted prices significantly earlier in the week.

On the COMEX, gold futures were seen trading between $4,350 and $4,360 per ounce, slightly lower from Tuesday’s close near $4,386.

Gold and silver rebounded strongly on Tuesday from intraday lows due to renewed safe-haven demand. The sentiment was driven by setbacks in the Russia–Ukraine peace process, U.S. strikes on Venezuelan dockyards, and Chinese naval drills amid rising U.S.–Taiwan friction.


However, Rahul Kalantri, VP Commodities at Mehta Equities, cautioned that the rally was capped following the Federal Reserve’s policy meeting minutes, which indicated reduced expectations of aggressive rate cuts in 2026.

With global uncertainties and monetary policy expectations still evolving, the precious metals market remains finely balanced heading into the new year. For now, price action may remain range-bound, with traders closely watching any shift in geopolitical and central bank narratives.

Technicals still suggest bullishness

According to Ponmudi R, CEO of Enrich Money, prices continue to respect the long-term trendline with immediate support around the 20-day EMA at $4,351. While short-term price action remains under pressure, the broader structure is still seen as bullish. A sustained breakout above $4,400 could open the door to $4,500 levels, he added, though downside support remains firm at $4,300 to $4,250.

On the domestic front, MCX gold futures were seen consolidating in the Rs 1,35,500 to Rs 1,35,700 range.

Enrich Money highlighted that a move back above Rs 1,36,500 could revive momentum towards Rs 1,38,000 to Rs 1,40,000, with strong support at Rs 1,34,000 to Rs 1,33,000. Technicals continue to favour buy-on-dip strategies, though short-term movements remain sensitive to global developments.

Gold outlook for 2026

Looking ahead to 2026, analysts maintained a constructive view on the yellow metal.

Mahendra Luniya, Chairman of Vighnaharta Gold, added that gold could test $4,900 in 2026 with a potential move towards $5,200, and INR prices could range between Rs 1.78 lakh and Rs 1.82 lakh per 10 grams. In the long term, he projected Rs 3.42 lakh per 10 grams by 2030.

Also read: Silver prices crash by Rs 15,000 on last trading day of 2025. What should traders do?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)