Gold prices: Gold prices declined on Friday, February 28, marking their largest weekly drop since November. The strengthening US dollar weighed on bullion as investors looked forward to key US inflation data for clues on the Federal Reserve’s monetary policy.
Since the beginning of the year, gold prices have surged by ₹8,310 or 10.5 per cent, rising from ₹79,390 per 10 grams on January 1 to the current ₹87,700 per 10 grams.
Continuing its downward trend for the third consecutive day, silver prices plunged by ₹2,100, reaching a two-week low of ₹96,400 per kg. In the previous session, the white metal had settled at ₹98,500 per kg.
“Gold and silver declined once again due to a strong rebound in the dollar index. The US President’s announcement of new tariffs on Mexico and Canada, set to take effect on March 4th, strengthened the dollar, exerting downward pressure on metal prices,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
According to commodities experts, Trump’s decision to impose an additional 10 per cent tariff on China, increasing the total tariff rate to 20 per cent on imports into the US, dampened market optimism about the possibility of these tariffs being postponed.
Is it right time to invest in Gold?
Rahul Kalantri of Mehta Equities further said that gold could surpass $3,000 internationally and ₹88,000 domestically, but whether they can hold at these levels is remains a critical concern.
Meanwhile, Jateen Trivedi, VP Research Analyst-Commodity and Currency at LKP Securities recommends investors to follow ‘buy on dips’ approach.
“Given this bullish momentum, a “buy on dips” approach remains the best strategy. Any correction from the current ₹86,400 level toward ₹85,000- ₹84,000 presents fresh buying opportunities, as market sentiment remains firmly positive. Profit booking may emerge around the $3,050 per ounce level internationally or if trade tariff uncertainties subside. Until then, gold is well-positioned to extend gains, potentially reaching ₹87,500 in the near term,” Trivedi said.
