Gold prices witnessed mild profit booking after a strong rally, while global uncertainties and trade tensions continued to influence market sentiment.
As speculators hurry to book profits after a rapid rally, gold prices are trading slightly lower on February 26.
Gold Prices Slip Amid Profit Booking
Early trading today saw spot gold on Comex ease from the previous session’s peak of $5,230 per ounce to $5,204 per ounce, representing a 0.41 percent drop over the previous day.
Gold futures on the MCX finished at Rs 1,61,100 per 10 grams (24-carat) in the domestic market, a decrease of 0.03 percent from the previous close. In the meantime, during the evening session, the Indian Bullion Jewellers Association (IBJA) set the benchmark gold price at Rs 1,59,008 per 10 Gram.
📈 Gold Price Technical Breakout & Targets
- Current Comex Price: $5,204 per ounce
- MCX Gold: Rs 1,61,100 per 10 grams (24-carat)
- Key Breakout Level: Above $5,200 mark
- Next Resistance: $5,300 (Rs 1,64,000)
- Higher Target: $5,400 (Rs 1,67,000)
- Trend Outlook: Positive momentum with high volatility
Safe Haven Demand and Geopolitical Tensions
Long-term tariff-related uncertainty and ongoing US-Iranian hostilities are maintaining demand for safe haven assets, which is keeping gold prices high despite profit-taking. The risk premium has somewhat decreased because to optimism about potential US-Iran negotiations today, which has kept prices restricted at higher levels. Given current geopolitical events, volatility is anticipated to remain high since any escalation or collapse in negotiations could swiftly spark a resurgence of safe-haven buying.
As market players remained cautious in the face of further uncertainties surrounding the US trade framework, the rupee traded at 90.95 against the US dollar in early Thursday’s trading. Analysts say the rupee is still range-bound, with resistance at 90.50 and support at 91.25.
Gold Prices in Indian Cities Remain Stable
With only slight variations brought on by local taxes, jeweler’s margins, and transportation expenses, gold prices in India’s major cities were very consistent.
According to the February 25 Augmont Bullion report, gold has surpassed the $5,200 (about Rs 1,61,000) mark. With prices now probably aiming for the next resistance zones around $5,300 (Rs 1,64,000) and $5,400 (Rs 1,67,000), this technical breakout suggests continued positive momentum.
🌍 Global Factors Supporting Gold
- US Trade Policy Uncertainty: Tariff-related tensions
- US-Iran Talks: Ongoing negotiations in Geneva
- Inflation Concerns: Rising US inflation pressures
- GDP Data: Q4 growth slows to 1.4%
- Fed Rate Outlook: Possible delay in rate cuts
- Market Impact: Safe-haven demand remains strong
US Trade Policy and Tariff Developments
Prices for precious metals are closely following the resurgence of trade policy uncertainties in the United States. The U.S. Supreme Court ruled that President Donald Trump had overreached himself and invalidated a number of his tariffs. Trade tensions increased when Trump promised to raise import taxes to 15%.
This week, the United States and Iran will meet in Geneva for a third round of negotiations. Despite the dialogue’s suggestion of diplomatic engagement, markets continue to favor bullion due to the persistent uncertainty surrounding Iran’s nuclear program.
Inflation, GDP Growth and Fed Rate Expectations
In December, US inflation increased more than anticipated, and there were signs that it might continue to accelerate in January. Long-term inflation may postpone rate reductions by the Fed, which could limit the upside of gold. But lower-than-anticipated Q4 GDP growth of 1.4 percent indicates a slowing economy, which may eventually boost expectations of monetary easing and give gold and silver underlying support.
Disclaimer: This article is for informational purposes only. Investors should consult a financial advisor before making any investment decisions in gold or other precious metals.
