MCX share price rallies 4% as safe haven demand grows; should you buy?

MCX share price: MCX shares are in focus as gold and silver prices jumped, supported by rising bullion demand amid ongoing geopolitical tensions

MCX share price today: Shares of Multi Commodity Exchange (MCX) traded higher today, tracking a sharp surge in gold and silver prices amid escalating tensions between the US and Iran. MCX shares opened 1 per cent lower at ₹2,427 on the National Stock Exchange (NSE) but quickly recovered the losses and climbed 4 per cent to a high of ₹2,534.30 in early morning deals.

At around 10:45AM, MCX shares were trading firmly in the green, up 2 per cent at ₹2,492. As many as 2.2 million equities of the commodity exchange changed hands.

Rajesh Palviya, senior vice president (head of research) at Axis Securities, said MCX shares are in the spotlight after a breakout above ₹2,460, supported by rising bullion demand amid ongoing geopolitical tensions.

 

"After witnessing some profit booking in recent weeks, MCX shares are now back in momentum. With gold and silver prices seeing a significant investor interest as the Middle East situation worsens, MCX is expected to be a key beneficiary of increased trading activity and higher volumes," he said. 

MCX share price target

"The latest breakout in MCX above ₹2,460 signals renewed buying momentum. This is a crucial level, and as long as MCX sustains above ₹2,460, the view will remain positive in the short term. For now, MCX is holding well above ₹2,460. The recent breakout paves the way for a rally up to ₹2,650 in the near term," the analyst added. 

MCX gold, silver price today

Meanwhile, precious metal prices saw a fiery start to the week as investors rushed for safe-haven assets amid global uncertainties following the escalation of Middle East tensions. On the MCX, gold for the April contract rose by ₹4,864 or 3 per cent to ₹1,66,900 per 10 grams, while silver futures for the May contract surged by ₹6,420 or 2.2 per cent to ₹2,89,064 per kg. 

Last week, gold and silver prices jumped by 3 and 8 per cent, respectively.

Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, said that bullion remains supported by safe-haven bids, persistent buying from central banks and exchange-traded funds, amid rising geopolitical and economic uncertainty in the global markets.  "The recent US Supreme Court ruling against Trump's trade tariffs has added another layer to global uncertainty, with several companies filing refund lawsuits," Mer said.  Bullion, a traditional safe-haven asset, has hit successive record highs already this year due to heightened global political and economic uncertainty. 

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