Gold prices dipped on Wednesday, February 19, as investors took profits following recent record highs. The market also remained attentive to geopolitical developments, particularly the US administration’s decision to engage in further peace talks with Russia over the ongoing Ukraine war.
As of 05:31 GMT, spot gold dropped by 0.2%, trading at $2,930.38 per ounce—just $12 shy of last week’s all-time high of $2,942.70. Meanwhile, US gold futures saw a slight decline of 0.1%, settling at $2,947.30 per ounce.
Ajay Kedia, Director of Kedia Commodities, noted, “Gold’s upside appears limited following the initial US-Russia peace talks, which have not yet provided a clear resolution. However, should a concrete agreement emerge, it could prove bearish for gold.”
The key support and resistance levels for gold are set at $2,890 per ounce and $2,970 per ounce, respectively. Analysts anticipate technical profit-taking as the premiums related to the war begin to ease.
Gold Prices in India
In India, gold prices remained relatively unchanged on Wednesday morning. In Mumbai, 22-carat gold was priced at ₹79,710 per 10 grams, while 24-carat gold stood at ₹86,906 per 10 grams.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, stated, “Gold continues to receive support from safe-haven demand and central bank purchases. However, short-term price movements will be influenced by peace talks and upcoming economic data.”
Investment Outlook
Gold continues to be a preferred hedge against inflation and economic uncertainty. While analysts anticipate potential short-term corrections, strong fundamental demand underpins a bullish long-term sentiment for the precious metal.
For investors, key price levels to watch in the short term are between $2,890 and $2,970 per ounce. In India, the ₹85,850-86,640 per 10 grams range will serve as important trading indicators.
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