Gold Prices on MCX Decline 0.03% to ₹1.60 Lakh

Gold Prices Decline Marginally Amid Profit-Taking

On February 26, gold prices traded lower, as investors booked profits following a sharp rally. The domestic futures gold on MCX opened at Rs 1,60,661 per 10 grams of 24-carat purity, down 0.03% from the previous close. Silver also retreated, falling 1.19% at Rs 2,65,121 per kilogram.

Comex spot gold eased from the previous session's high of $5,230 per ounce to $5,204 per ounce in early trade, marking a 0.41% decline over the past 24 hours. The Indian Bullion Jewellers Association (IBJA) fixed the standard gold price at Rs 1,59,008 per 10 grams in the evening session.

Market Analysis

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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, as any escalation or breakdown in talks could quickly revive safe-haven buying.

Currency Market

The 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.

City-Wise Gold Prices in India

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

Investment Outlook

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. A stronger USD and near-term profit-taking can cap short-term upside, but 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, and silver reacts sharply to global growth worries. Investors are rotating toward gold for stability, wealth preservation, and liquidity, with seasonal demand and steady ETF inflows reinforcing this narrative.