Gold Prices See Biggest Weekly Drop Since November, But Up 2.2% for February

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.

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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.

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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

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Key Reasons Behind Gold’s Decline

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💲 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.

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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)

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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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Tags:

#GoldPrices, #CommodityMarket, #GoldInvesting, #USDollar, #InterestRates, #TrumpTariffs, #GoldTrading, #GlobalEconomy, #SafeHavenAssets,