Gold prices fell slightly on Monday, February 24, as investors took profits following last week’s record-breaking surge. Market participants are now awaiting crucial U.S. inflation data to better understand the Federal Reserve’s next move on interest rates.
At 0204 GMT, spot gold decreased by 0.4%, trading at $2,925.63 per ounce. The precious metal had hit an all-time high of $2,954.69 per ounce on Thursday, February 20.
U.S. gold futures also saw a 0.5% drop, reaching $2,939.30 per ounce.
In India, the price of 24-carat gold fell by ₹10 to ₹8,793.3 per gram, while 22-carat gold declined to ₹8,061.3 per gram.
Key Drivers Behind the Price Movement
Profit Booking: After gold reached its highest-ever price, traders took profits, leading to a temporary pullback in the market.
U.S. Inflation Data: Investors are focusing on the upcoming release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation measure, scheduled for Friday, February 28. Higher inflation could influence the Fed‘s decisions on interest rates.
Tariff Concerns: U.S. President Donald Trump signaled potential new tariffs on imported goods, adding to global market uncertainties. Existing tariffs on Chinese imports, steel, and aluminum have already created pressure.
Geopolitical Tensions: Trump acknowledged Russia’s invasion of Ukraine and suggested a minerals agreement with Kyiv. Any further escalation in geopolitical risks could enhance gold’s appeal as a safe-haven asset.
Dollar and Bond Yields: The U.S. dollar index retreated amid weak economic data, including a lower services PMI and rising jobless claims. Additionally, the U.S. 10-year bond yield fell below 4.50%, which is supportive of gold prices.
Tim Waterer, Chief Market Analyst at KCM Trade, commented, “Gold has struggled to capitalize on broader risk aversion, as profit-taking has offset the demand for safe-haven assets. However, ongoing trade uncertainties may still push gold to new highs this week.”
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted, “Gold prices have surged for the eighth consecutive week amid global uncertainties. Despite recent profit-taking, the weaker dollar and falling bond yields continue to support the precious metal.”
Technical Outlook
Gold (International): Support is seen at $2,927-$2,895 per ounce; resistance is at $2,958-$2,975 per ounce.
Gold (India): Support is at ₹85,650-₹85,420 per 10 grams; resistance is at ₹86,350-₹86,540 per 10 grams.
Investment Perspective
Despite the recent dip, analysts remain optimistic about gold’s long-term prospects. Ongoing inflation concerns, central bank policies, and geopolitical risks are expected to continue driving demand for the metal.
Experts suggest that investors may view price corrections as buying opportunities, positioning themselves for potential future gains.
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