Gold Price Surges 2%: Navigating Investment Strategies Amid Market Volatility
Gold Prices Surge Amid Fresh Tariff Uncertainty and Weak Dollar
Market Update
On Monday, February 23, gold prices jumped almost 2% as fresh buying interest bolstered demand for safe-haven assets. In the domestic futures market, MCX gold prices reclaimed ₹160,000 per 10-gram mark, while internationally, gold futures were at $5,168, up 1.7%.
Key Drivers
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The surge in gold prices can be attributed to fresh trade policy uncertainty following the US Supreme Court's ruling against President Donald Trump's tariffs over the weekend. The US dollar fell, making greenback-priced commodities like bullion more affordable for overseas buyers. Furthermore, President Trump reacted to the ruling by imposing a blanket 15% levy on imports.
Market Outlook
Gold's renewed upswing after a healthy correction reflects a rebuilding of the geopolitical risk premium. Escalating US-Iran tensions and fresh uncertainty around US trade policy are pushing investors back toward safe havens. According to Rajeev Sharan, Head – Criteria, Model Development & Research at Brickwork Ratings, the picture for bullion remains positive over the long term.
Investment Strategy
For long-term investors, a Systematic Investment Plan (SIP) is more effective than a lump-sum approach. SIPs help average out costs and reduce the impact of volatility, while allowing additional purchases during market corrections. This strategy builds discipline, lowers risk, and enhances the potential for better returns in bullion over time.
Recommendations
- Nikunj Saraf, CEO at Choike Broking, recommends deploying 30-40% of intended allocation as a lump sum now and spreading the rest via SIP over 2-4 months.
- Prefer liquid ETFs for flexibility; choose Sovereign Gold Bonds only if you plan to hold for several years.
- Keep your overall gold exposure modest (commonly 5-10% of wealth) and rebalance after major market shifts.
Performance
According to spot market data, gold prices have jumped 18.5% so far this year, building on the 70% rise seen in 2025.
Investor Takeaway
Investors should consider diversifying their portfolios to include safe-haven assets like gold in response to market volatility.
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