Gold rate today: Following the strong US dollar, the MCX gold rate ended its seven-week winning streak and closed at ₹84,202 per 10 gm. However, gold prices finished higher for the second straight month, delivering 2.13 per cent returns in the international market. Spot gold finished at $2,858.60 per ounce, while COMEX’s price ended at $2,862.20 per troy ounce.

According to market experts, gold rates today are under profit-booking pressure as the US dollar rebounded from a two-week low and ended at a two-week high last week. This triggered profit-booking in the precious yellow metal. However, they maintained that safe-haven demand for gold persists as Trump’s tariff flare and US inflation worries remain.

US dollar rates in focus

On what is dragging gold prices today, Anuj Gupta, Head — Commodity & Currency, said, “Gold price today is under the profit-booking heat as the US dollar rate bounced back strongly after touching a two-week low last week. The American greenback gaining strength triggered profit-booking at higher levels. The US dollar gained strength due to Donald Trump’s tariff flare. The US President plans to tariff Mexico and Canada from March 4, 2025, while doubling the 10 per cent tariff on China.”

Trump-Zelensky meeting outcome

Pointing towards the impact of an explosive Trump-Zekensky meeting, Anuj Gupta said, “An explosive Trump-Zelensky meeting has stoked worries about geopolitical risks, which is expected to fuel safe-haven demand for gold. So, one should maintain buy-on-dips and avoid taking short positions in the current gold price fall.”

On triggers that may continue to dominate gold prices, Sugandha Sachdeva, Founder of SS WealthStreet, said, “The downturn in gold prices was triggered by profit-taking at elevated levels, a renewed surge in the US dollar index, which climbed to a two-week high, and optimism surrounding a potential Russia-Ukraine peace agreement. Investor sentiment remains cautious as Trump confirmed his proposed 25% tariffs on imports from Canada and Mexico, set to take effect on March 4, 2025, along with an additional 10 per cent levy on Chinese goods.”

On Friday, a meeting in the Oval Office that started out with cordialities turned heated at the end. Vice President JD Vance told Zelenskyy to show more gratitude toward Trump before the president himself began shouting.

“You’re gambling with the lives of millions of people,” Trump berated Zelenskyy. “You’re gambling with World War III.”

With that, Trump scrapped plans to sign an agreement that would have allowed the US to access Ukraine’s rare earth minerals, a deal the US president had said would have helped move the war toward a conclusion. The blowup cast new doubt on the future of US support for Kyiv in fending off Russia’s invasion.

US economic data

“As for the key economic data, the US Q4 GDP growth came in line with expectations as per the second estimates at 2.3%, slowing from a 3.1% rise in the third quarter. As for the Fed’s preferred inflation gauge, the latest report indicates that Personal Consumer Expenditure rose by 2.5% in January annually, a decrease from December’s 2.6% rise. Further, the Core Personal Consumption expenditure came in at 2.6% for January, which is in line with expectations and down from 2.9% in December. This decline aligns with market expectations and boosted the dollar, exerting pressure on gold prices,” Sugandha added.

The SS WealthStreet expert maintained that the build-up of COMEX gold inventories has slowed down, and the price differential between spot and COMEX gold has also narrowed, indicating a cooling off in prices from record highs.

On critical gold price levels that investors should know, Sugandha Sachdeva said, “Gold price pattern suggests that yellow metal has formed a key hurdle at ₹86,580 per 10 gm or $2,956 per ounce mark zone and is seen headed lower. However, prices are nearing their crucial support of ₹83,800 per 10 gm or $2,830 per ounce mark, a breach of which may further put pressure on the yellow metal and drag it to the level of ₹82,000 per 10 gm mark or $2,790 per ounce in coming days.”

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.