Gold price today: MCX gold crashes over 4% to ₹92,588 as investors sell off safe-haven assets

Gold price today: Gold Futures on the Multi Commodity Exchange (MCX) of India crashed over 4 per cent on Monday, May 12, 2025, after investors started to sell off the precious yellow metal as a move to shed safe-haven assets and place riskier bets as global markets rise.

Gold futures for the June 2025 contract crashed more than 4 per cent or by ₹3,930 to ₹92,588 per 10 grams on Monday, at 5:02 p.m. (IST), compared to ₹96,518 at the previous commodity market close on MCX.

Gold prices crashed on Monday, hitting an intraday low of ₹92,389. According to official data, the lifetime high of the gold futures was ₹99,358, and the lowest was ₹77,078.

On the other hand, Silver futures also tanked 2.26 per cent or by ₹2,190 to its current level of ₹94,539 as of 5:17 p.m. (IST), compared to ₹96,729 at the previous market close.

This sell-off shows that investors have lost their patience in the safe-haven assets and are now moving towards equity markets as they regain confidence over an easing global uncertainty.

Jateen Trivedi, the VP Research Analyst of Commodity and Currency at LKP Securities, said that the tariff relief, along with the de-escalation efforts between India-Pakistan and Russia-Ukraine, triggered a sharp selloff in the precious yellow metal.

“Gold prices plunged sharply by approximately ₹4,000 to ₹92,500 on the MCX, following a significant de-escalation in global trade tensions. The U.S. and China agreed to lower tariffs by 10% on U.S. products and 30% on Chinese goods for a 90-day period to facilitate continued trade negotiations. This announcement triggered a sharp rally in the dollar index, which surged above $101.50, eroding the appeal of gold as a safe-haven asset,” said the commodities expert.

“In addition to the tariff relief, geopolitical tensions cooled with signs of a potential truce between Russia and Ukraine, and a ceasefire agreement between India and Pakistan. These developments led to heavy profit booking in gold, which had previously rallied on global uncertainty,” said Trivedi.

Looking ahead, the expert anticipates that the precious yellow metal now faces resistance in the range of ₹94,000 to ₹95,000, with the next support level at ₹90,000.

“Technically, gold now faces immediate resistance in the ₹94,000 – ₹95,000 range, while the next major support lies at ₹90,000. With safe-haven demand fading, further downside cannot be ruled out if global risk sentiment remains stable,” he said.

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