Spot gold fell 0.4% to $2,864.33 per ounce (as of 0459 GMT).
US gold futures declined 0.7% to $2,875.00 per ounce.
In India:
24-carat gold: ₹8,684 per gram
22-carat gold: ₹7,960 per gram
18-carat gold: ₹6,513 per gram
Gold has lost 2.5% this week after eight consecutive weeks of gains but remains up 2.2% for February.
Why are gold prices falling?
A stronger dollar has made gold more expensive for foreign buyers. The dollar index is set to gain 0.7% this week.
Market strategist Yeap Jun Rong noted that gold remains a safe haven, but profit-taking and a firm US dollar are weighing on prices.
Impact of tariffs and inflation data
US President Donald Trump announced 25% tariffs on Mexican and Canadian goods and an extra 10% duty on Chinese imports, effective March 4. This boosted the dollar and pressured metal prices.
Investors await the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure.
Philadelphia Fed President Patrick Harker supports keeping interest rates between 4.25%-4.50%, reducing expectations of rate cuts that could support gold.
Outlook
Rahul Kalantri, VP Commodities, Mehta Equities, said that gold failed to hold gains due to a stronger dollar and tariff concerns.
Technical levels:
Gold support: $2,855-$2,840 per ounce | Resistance: $2,900-$2,922 per ounce
Gold (INR) support: ₹84,850-₹84,620 per ounce | Resistance: ₹85,480-₹85,640 per ounce
–With Reuters inputs
First Published: Feb 28, 2025 1:33 PM IST
