Gold Prices Rebound Amid Geopolitical Jitters, MCX Rates Up 2%

Gold prices rose globally on Thursday, following a two-day slump, as geopolitical uncertainties emerged following the US sanctions on Russian oil companies.

On India's Multi Commodity Exchange, gold futures for December delivery rose 2% to trade at Rs 124,250 per 10 gram at 7:45 pm (IST).

In the US spot market, gold was up 1.11% at $4,145 an ounce at 10:30 am (local time). The derivates were also edging higher, as gold futures on the New York-based Commodities Exchange Inc. were trading 2.2% higher at $4,154.7 per ounce at the same time.

The jump in gold's value comes after the metal slipped for two consecutive days, with slide as sharp as 6% on Tuesday. This was in the backdrop of gold hitting an all-time high of $4,381.21 an ounce.

The safe-haven asset, which thrives in periods of uncertainties, rose a day after Trump slapped sanctions on Lukoil and Rosneft, which hold the potential to disrupt oil supply to China.

China's state oil majors PetroChina, Sinopec, CNOOC, and Zhenhua Oil will refrain from dealing in seaborne Russian oil, at least temporarily, amid fears of violating sanctions, news agency Reuters reported, citing sources. The companies did not immediately respond to requests for comment.

Meanwhile, gold investors will also keep a keen eye on the US retail inflation data to be released on Friday. A lower consumer price index (CPI) print may reinforce the Fed's view of slashing interest rates.

A low-interest rate environment will provide a further impetus to the price of gold, since it is a non-yielding asset. However, a higher inflation reading may deter the Fed from embarking on its rate cut plans. This, in turn, could hurt the bullion rates.

JPMorgan, in a note on Thursday, suggested that the gold bull run may continue. As per its forecast, the yellow metal's price may reach $5,055 an ounce in the fourth quarter of 2026.