After eight weeks of gains, gold prices dip as a stronger U.S. dollar, profit-booking, and global trade tensions weigh on sentiment.
March 1, 2025: Gold Prices Set for Sharpest Weekly Decline Since November: Here’s Why
Gold prices declined on Friday, February 28, 2025, heading for their biggest weekly drop since November 2024. The sharp fall is attributed to a stronger U.S. dollar, profit-taking by investors, and trade-related concerns following tariff announcements by the U.S. government.
Despite this pullback, gold remains up 2.2% for February and continues to be a preferred safe-haven asset amid ongoing geopolitical and economic uncertainties.
Gold Market Performance This Week
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📉 Spot Gold: Fell 0.4% to $2,864.33 per ounce
📉 US Gold Futures: Dropped 0.7% to $2,875 per ounce
📉 Weekly Decline: Gold lost 2.5% this week, its biggest drop since November 2024
💰 Gold Prices in India (Per Gram):
🔹 24-Carat Gold: ₹8,684
🔹 22-Carat Gold: ₹7,960
🔹 18-Carat Gold: ₹6,513
Key Reasons Behind Gold’s Decline
💲 Stronger U.S. Dollar
- The dollar index gained 0.7% this week, making gold more expensive for foreign buyers and reducing its appeal as an investment.
📉 Profit-Taking After Strong Rally
- Gold had surged for eight consecutive weeks, prompting investors to book profits amid global economic uncertainty.
🚨 Trump’s Tariff Announcement
- U.S. President Donald Trump announced 25% tariffs on Mexican and Canadian goods, along with a 10% duty on Chinese imports, effective March 4.
- This boosted the dollar and added downward pressure on gold prices.
📊 US Federal Reserve & Interest Rates
- Investors are awaiting the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, due at 1330 GMT.
- Philadelphia Fed President Patrick Harker indicated that interest rates will remain between 4.25%-4.50%, reducing expectations of rate cuts that typically support gold.
Gold Market Outlook & Technical Levels
📉 Support Levels:
- $2,855-$2,840 per ounce
- ₹84,850-₹84,620 per 10 grams (INR market)
📈 Resistance Levels:
- $2,900-$2,922 per ounce
- ₹85,480-₹85,640 per 10 grams (INR market)
Conclusion
While gold has seen a sharp weekly decline, it remains a strong hedge against economic uncertainty. Investors will keep an eye on upcoming U.S. inflation data and Federal Reserve policies, which could influence gold’s trajectory in the coming weeks.
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#GoldPrices, #CommodityMarket, #GoldInvesting, #USDollar, #InterestRates, #TrumpTariffs, #GoldTrading, #GlobalEconomy, #SafeHavenAssets,