Gold Price Hits Record High of Rs 1.60 Lakh on MCX: Key Factors to Watch

Gold Prices Rise Amid Geopolitical Tensions and Firmed Dollar

February 25: Gold prices are trading marginally higher today, driven by geopolitical tensions and a firmer dollar. The domestic futures price of gold on MCX opened the session higher at Rs 1,60,794 per 10 grams of 24-carat purity, representing a 0.52 percent gain from the previous close.

Global Gold Prices: The spot price of gold on Comex crossed $5,204 during early trade, marking a 0.54 percent gain in the last 24 hours. The Indian Bullion Jewellers Association (IBJA) has pegged the standard gold price at Rs 1,59,503 per 10 grams of 999 purity, up 0.68 percent from the previous close.

Market Sentiment: Optimism over possible US-Iran talks has slightly cooled risk premium, keeping prices capped at higher levels. Analysts expect volatility to remain elevated given ongoing geopolitical developments, with any escalation or breakdown in talks potentially reviving safe-haven buying.

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

Currency Market: The rupee traded at 90.89 against the US dollar in early trade, with immediate resistance lying near 90.50 and support around 91.25. Further direction is likely to depend on clarity over trade negotiations and the dollar index.

Investment Outlook: Market participants are closely tracking US trade developments, with the earlier 18 percent tariff framework potentially adjusted following a US court order. However, uncertainty remains, keeping sentiment cautious and preventing aggressive positioning in the currency.