Gold price today: MCX gold recovers from recent dip, up ₹2,700 per 10 grams. What’s powering the upswing?

Gold prices today: Gold prices recovered in Thursday's session from the recent sell-off, with the December futures contract on MCX gaining 2.25% to an intraday high of ₹124,600 per 10 grams, rebounding from a multi-week low of ₹120,515 hit on Wednesday, as U.S. sanctions against Russia and possible new export controls on China added to geopolitical risks, boosting demand for safe-haven assets.

Geopolitical Drivers

Trade fears resurfaced after reports emerged that the Donald Trump administration is reportedly considering a significant escalation in trade tensions with China. The plan is to curb a wide range of software-powered exports to China, from laptops to jet engines.

This potential action, which could affect the import of several items, is being weighed as retaliation against Beijing's latest round of rare earth export restrictions, Reuters reported.

Meanwhile, Treasury Secretary Scott Bessent on Wednesday confirmed that the White House is mulling plans to curb exports to China made with U.S. software.

Bessent's statement comes ahead of his highly anticipated talks with Chinese Vice Premier He Lifeng in Malaysia later this week, which could set the stage for a potential meeting between Trump and Chinese President Xi Jinping in South Korea at the month's end.

President Donald Trump earlier this month said that the U.S. would impose export controls on "any and all critical software" to China beginning next month by barring global shipments of goods containing U.S. software to the country.

Trump also imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft.

Impact on Gold Prices

Recent Sell-Off: Gold fell roughly ₹10,110 per 10 grams over two sessions on MCX, marking its largest short-term correction in the recent past.

Recovery: The rebound on Thursday was supported by risk-off sentiment and safe-haven buying.

Year-to-Date Performance: Despite volatility, gold remains up nearly 62% year-to-date, outperforming other asset classes such as equities and bonds.

Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said, " Uncertainty over shifting US presidential policy views led to a modest rebound as investors looked to re-enter at lower levels. The upcoming US CPI data remains a crucial factor for near-term direction. Gold faces stiff resistance at ₹1,25,000– ₹1,25,500 and support between ₹1,20,000– ₹1,21,000."

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