Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Spot gold dropped 0.4% to $2,925.63 an ounce at 0204 GMT. The metal had reached a record high of $2,954.69 per ounce last Thursday (February 20).
US gold futures also slipped 0.5% to $2,939.30 per ounce.
In India, 24-carat gold prices fell by ₹10 to ₹8,793.3 per gram, while 22-carat gold declined to ₹8,061.3 per gram.
Key drivers behind price movement
Profit booking: After reaching an all-time high, traders took profits, leading to a temporary pullback.
US inflation data: Investors are focusing on the upcoming Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, set for release on Friday (February 28). Higher inflation could influence Fed rate decisions.
Tariff concerns: US President Donald Trump signaled new tariffs on imported goods, adding to global uncertainty. Existing tariffs on Chinese imports, steel, and aluminum have already pressured markets.
Geopolitical tensions: Trump acknowledged Russia’s invasion of Ukraine and hinted at a minerals agreement between the US and Kyiv. Any escalation in geopolitical risks could support gold’s safe-haven demand.
Dollar and bond yields: The US dollar index retreated due to weak economic data, including lower services PMI and rising jobless claims. The US 10-year bond yield also fell below 4.50%, supporting gold prices.
“Gold has been unable to capitalise on broader risk aversion as profit-taking offset safe-haven demand,” said Tim Waterer, Chief Market Analyst at KCM Trade. “However, with ongoing trade uncertainties, gold may still test new highs this week.”
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, noted, “Gold prices surged for the eighth straight week amid global uncertainty. Despite recent profit booking, the weaker dollar and lower bond yields continue to support bullion.”
Technical outlook
Gold (International): Support at $2,927-$2,895 per ounce; resistance at $2,958-$2,975 per ounce.
Gold (India): Support at ₹85,650-₹85,420 per 10 grams; resistance at ₹86,350-₹86,540 per 10 grams.
Investment perspective
Despite the current dip, analysts remain optimistic about gold’s long-term outlook. Persistent inflation concerns, central bank policies, and geopolitical risks could keep demand strong.
Investors may see price corrections as buying opportunities, say experts.
–With Reuters inputs
