Gold Market Recap: MCX Consolidates After Record Run, Spot Prices See Marginal Rise on New Year's Day

The Indian gold market ushered in the New Year on January 1, 2026, with a day of mixed signals for the precious metal. While physical gold prices in several major cities like Bhubaneswar and across India registered a marginal increase, the Multi Commodity Exchange (MCX) gold futures market experienced consolidation and a notable pullback from its recent historic highs. This divergence reflected a cautious start to the year, with investors and traders evaluating the recent record run and taking stock of their positions.

On the physical front, 24k gold was noted at ₹135,990 per 10 gram in some reports, with an overall marginal rise of about 0.05% in rates across major cities like Mumbai, Chennai, Delhi, and Bengaluru. However, on the MCX, the picture was somewhat different. Gold futures retreated significantly, reportedly falling 4% from their historic peaks. This correction was largely attributed to profit booking after a robust performance, leading to MCX gold slipping from its recent gains. Silver prices, too, displayed a varied trend. While some reports indicated silver holding steady at ₹2.35 lakh per kg, other regional data showed falls in places like Bhubaneswar and gains in the New Year's first trade, suggesting overall fluctuating or swinging movements across the spot and futures markets.

The primary driver for the day's market dynamics appeared to be the aftermath of gold's recent "record run." Investors who had accumulated gold at lower levels or during the recent surge engaged in profit booking, leading to the observed consolidation and slipping of MCX futures. The "New Year trading" environment also played a role, with market participants recalibrating their positions for the year ahead. The general sentiment pointed towards a market taking a breather, digesting the substantial gains of the recent past, and assessing future directions rather than a sustained one-way movement.

For Indian investors and jewelry shoppers, the current market presents a nuanced situation. While the marginal rise in spot prices might signal continued underlying demand, especially for the auspicious start to the year, the retreat on MCX suggests that the market is correcting after its sharp ascent. Those looking to buy gold may find the current consolidation phase an interesting point to consider, while existing investors might keep an eye on further profit booking activities. The outlook for both gold and silver in the New Year remains a key point of discussion, with experts now looking for clearer trends to emerge after this initial period of price fluctuation and adjustment.