Gold has regained investor interest after a brief phase of profit-taking last week, as renewed geopolitical tensions involving the United States and Venezuela revived demand for safe-haven assets. The return of uncertainty has shifted market focus back toward defensive positioning, benefitting precious metals.
Domestic gold prices surged on Monday, with MCX Gold rising more than one per cent in early trade, mirroring a strong rally in international markets. On the global front, COMEX Gold climbed decisively above the $4,400 level, marking a clear reversal in sentiment following last week’s sharp correction and signalling fresh bullish conviction among traders.
The latest upswing follows a weak close in the previous week, when gold prices dropped by over four per cent as investors booked profits at elevated levels. That decline, however, proved temporary, as shifting geopolitical dynamics quickly altered risk appetite and revived buying interest in gold.
According to market observers, sentiment turned sharply after reports of escalating geopolitical tension in Venezuela, particularly following the capture of the country’s president by American forces. Deveya Gaglani noted that these developments restored gold’s appeal as a safe-haven asset, prompting investors to return to the metal amid rising global uncertainty.
Gaglani added that the near-term outlook for gold remains positive as long as COMEX prices hold above the $4,250 level. In the domestic market, he said MCX Gold could advance towards the Rs 1,40,000 mark, provided prices continue to find support above Rs 1,32,000 on the downside.
Market participants say the latest geopolitical flare-up has once again highlighted gold’s role as a hedge against uncertainty, especially at a time when investors are already grappling with an unsettled global environment marked by political risks and economic ambiguity.
Ankita Pathak pointed out that precious metals, particularly gold, tend to remain well-supported during periods of heightened geopolitical stress. She said that rising uncertainty and risk aversion typically favour gold, a pattern that appears to be playing out once again in current market conditions.
Beyond geopolitical factors, analysts also cite expectations of future easing by the US Federal Reserve and continued central-bank purchases as key pillars supporting gold’s longer-term bullish outlook. These structural drivers, they say, continue to provide a strong foundation for prices even amid short-term volatility.
From a technical perspective, chart patterns suggest that gold’s broader uptrend remains intact in both global and domestic markets. Analysts note that recent price action has reinforced bullish signals rather than undermined them.
Ponmudi R observed that COMEX Gold has confirmed a bullish breakout after closing above a critical resistance zone. He said the move beyond $4,415 has opened the way for a potential advance towards the $4,450–$4,500 range, with momentum clearly favouring buyers.
He added that the earlier consolidation band between $4,330 and $4,370 has now turned into a strong support zone. Prices are also holding above the 20-day exponential moving average, indicating ongoing accumulation during minor pullbacks.
In the Indian market, MCX Gold continues to post higher highs and higher lows, a classic indication of a healthy and sustained uptrend. The 20-day EMA near Rs 1,34,500, along with a rising trendline, remains intact, reflecting steady buying interest.
Analysts believe that a decisive break above Rs 1,37,500 could accelerate gains towards the Rs 1,40,000 to Rs 1,45,000 range. On the downside, the Rs 1,33,000 to Rs 1,34,000 band is seen as an important support area that could cushion any near-term corrections.
For investors, the renewed focus on geopolitical risks and improving technical signals suggest that gold’s broader bias remains positive. Market experts recommend a buy-on-dips strategy rather than aggressively chasing prices at higher levels, especially given the likelihood of continued volatility.
Short-term price movements are expected to remain sensitive to global political developments and signals around US interest rate policy, which are likely to drive fluctuations even as the medium- to long-term outlook for gold stays constructive.
