MMTC Surges 9% as Gold, Silver Prices Hit New Highs

MMTC Surges as Precious Metals Hit New Highs

MMTC Limited shares posted significant gains on Wednesday, climbing over 9% in intraday trade. The state-owned trading enterprise's stock movement was closely tied to a sharp rise in gold and silver prices across domestic and global markets. This surge in precious metals attracted strong buying interest, driving MMTC's upward trajectory.

Meanwhile, broader market indices experienced volatility. The Nifty50 saw a minor decline of 0.14%, while the Sensex dropped by 123 points, equivalent to 0.15%. In contrast, the Nifty Metal index emerged as a top performer, registering a robust increase of 2.56% to reach 11,644.80.

Global Factors Fuel Gold and Silver Rally

Analysts attribute the sharp rise in gold prices to a confluence of factors. Global economic uncertainty, expectations of interest rate cuts by major central banks, and ongoing geopolitical tensions are creating a safe-haven demand. Silver also saw strong gains, bolstered by robust industrial demand and continued safe-haven buying.

Ponmudi R, CEO of Enrich Money, noted that gold and silver have scaled fresh record highs, driven by heightened concerns over U.S. central bank independence and global geopolitical instability. Renewed unrest in Iran, tighter U.S. sanctions, and proposed tariffs have amplified risk aversion worldwide. Weaker U.S. jobs data further bolstered expectations for Federal Reserve rate cuts in 2026, providing additional support for precious metals.

Beyond macroeconomic factors, structural demand remains robust. Central banks continue to accumulate gold reserves, while industrial consumption of silver is increasing due to its use in solar energy, electric vehicles, AI infrastructure, and electronics. Persistent supply constraints are also contributing to price increases.

Analyst Forecasts Bullish Outlook for Gold

Regarding MCX Gold, Ponmudi R observed strong positive momentum, trading near recent highs of ₹1,42,949. The price structure remains firmly bullish, displaying a clear higher-high and higher-low formation within a rising channel. A breakout above ₹1,43,000 could push prices towards ₹1,45,000–₹1,48,000 in the near term. Analysts suggest maintaining a bullish strategy, with preferred buy-on-dips zones identified between ₹1,38,000–₹1,40,000.

The company's stock previously hit a 52-week high of ₹88.20 in May 2025 and a 52-week low of ₹42.55 in April 2025, indicating significant recovery potential.