Gold Prices Fall 1.4% to $5,158.24 Per Ounce

Market Update

On February 24, gold prices retreated from a three-week high, dropping 1.4% to $5,158.24 per ounce by 01:40 p.m. ET, amidst profit-taking and a firmer USD. U.S. gold futures for April delivery also settled 0.9% lower at $5,176.30.

Market Factors

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The USD rose 0.1%, making greenback-priced bullion more expensive for holders of other currencies. This, combined with profit-taking, contributed to the decline in gold prices. However, gold prices remain supported by safe-haven demand, driven by tensions between the U.S. and Iran, as well as ongoing trade uncertainty.

Market Outlook

Despite the decline, gold prices are expected to remain supported by fundamentals. However, with prices nearing record highs, they may face stiff resistance, requiring a fresh geopolitical catalyst to push to new highs.

Commodity Prices

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

• Silver: Edged down 1.2% to $87.21 per ounce
• Platinum: Rose 1% to $2,175.95 per ounce
• Palladium: Rose 2.3% to $1,785.35 per ounce

Economic Update

Outgoing Atlanta Federal Reserve President Raphael Bostic warned that the U.S. may be entering a phase of structurally higher unemployment as firms adopt AI to cut labor, a shift that the Fed may not be able to counter with lower rates.