Gold Price Falls 0.42% to $5,204 on Comex Amid Ongoing Market Uncertainty

Global Gold Prices Decline Marginally

On February 26, gold prices have eased in early trade, with $5,204 per ounce on the Comex, a 0.41 percent decline from the previous session's high of $5,230 per ounce.

Domestic Market Performance

In the Indian market, gold futures on the Multi Commodity Exchange (MCX) settled at Rs 1,61,100 per 10 grams (24-carat), down 0.03 percent from the earlier close. The Indian Bullion Jewellers Association (IBJA) fixed the standard gold price at Rs 1,59,008 per 10 grams in the evening session.

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Market Dynamics

Persistent tariff-related uncertainties and lingering US-Iran tensions are sustaining safe-haven demand, keeping gold prices elevated amid profit-taking. Optimism over possible US-Iran talks has slightly cooled risk premium, keeping prices capped at higher levels. Volatility is expected to stay elevated given ongoing geopolitical developments.

Currency Market Update

The Indian rupee traded at 90.95 against the US dollar in early trade on Thursday, as market participants remained cautious amid fresh uncertainty around the US trade framework. The rupee remains range-bound, with support near 91.25 and resistance around 90.50.

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City-wise Gold Prices

Gold rates across India's major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Market Insights

According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the dip in gold this week reflects the market trying to balance macro headwinds and safe-haven demand. Structural drivers remain supportive, including central bank accumulation, geopolitical tensions, and sticky global inflation expectations. A softer rupee increases domestic gold prices even when international prices dip.