Gold prices remained near all-time highs on Tuesday, supported by strong safe-haven demand as investors navigated ongoing global economic uncertainties. In international markets, spot gold traded at $2,950.39 per ounce, just $6 below its record high of $2,956.15 per ounce. Meanwhile, U.S. gold futures edged up 0.1% to $2,967.40 per ounce.
In India, 24K gold prices climbed to ₹87,880 per 10 grams, while 22K gold rose to ₹80,560 per 10 grams, according to data from Upstox.
Key Drivers of Gold’s Rally
The surge in gold prices is largely attributed to rising geopolitical risks and inflation concerns linked to U.S. tariff policies. Market participants are closely monitoring the upcoming March 4 deadline for tariffs on Mexican and Canadian imports, with former President Donald Trump reaffirming that the measures remain “on time and on schedule.”
Additionally, uncertainty surrounding the Federal Reserve’s monetary policy continues to influence investor sentiment. While Fed officials may take a hawkish stance in the short term, markets have largely priced in a prolonged pause in rate adjustments, limiting its immediate impact on gold prices.
Investors are also awaiting Friday’s release of the U.S. Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge. The data is expected to provide further insight into potential rate cuts later this year.
Gold’s Market Outlook
Colin Shah, Managing Director of Kama Jewelry, anticipates continued strength in gold prices amid economic volatility and weak U.S. economic indicators.
“Gold prices are expected to stay afloat amid global uncertainties. The trajectory of the U.S. dollar index (DXY) and USD will be key. While near-term profit booking may occur, mid-to-long-term bullish momentum is likely. We anticipate gold to test $3,000 per ounce in the mid-term,” he said.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that safe-haven buying and strong inflows into gold-backed exchange-traded funds (ETFs) are supporting prices.
“Trump’s tariff threats, Russian drone attacks on Ukraine, and tensions in the Israel-Hamas ceasefire negotiations are fueling demand for gold,” he said.
Technical Levels and Investment Perspective
From a technical standpoint, gold has immediate support at $2,927-$2,895 per ounce and resistance at $2,958-$2,975 per ounce. In the Indian market, key support levels are at ₹85,850-₹85,620 per 10 grams, while resistance lies at ₹86,510-₹86,740 per 10 grams, according to Kalantri.
With strong investor demand and ongoing geopolitical uncertainties, analysts expect gold prices to sustain their upward trajectory, making it an appealing asset for long-term investors.
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