Gold prices climbed sharply on Saturday, February 14, extending a week marked by heightened volatility in domestic and global bullion markets. In Indian markets, both physical and futures prices moved higher, reflecting a combination of global macroeconomic cues, currency movements and steady underlying demand.
In international markets, spot gold traded close to recent highs, with prices hovering around US$ 2,030–2,050 per ounce. In rupee terms, this translated to roughly Rs13,800–Rs 14,200 per gram, supported by a softer dollar and expectations of easier monetary policy later in the year.
In India, domestic prices mirrored the global uptrend. In major cities including Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad, 24-carat gold was trading in the range of Rs 1,55,000 to Rs 1,57,000 per 10 grams, while 22-carat gold was priced between Rs 1,42,000 and Rs 1,44,000 per 10 grams. City-wise variations remained marginal, driven largely by local taxes and making charges rather than fundamental differences in demand.
Bullion market analysts say that the current price compression suggests energy build-up rather than structural weakness.
"COMEX Gold continues to consolidate above the $5,000 zone, successfully defending the structural demand base formed after last week’s aggressive liquidation. The broader multi-year rising channel remains intact, with the $4,500–$4,600 breakout cluster acting as a key long-term support region. As long as gold sustains above $4,900 on a closing basis, the bias remains constructive, with recovery potential toward $5,150–$5,350 on renewed safe-haven demand or incremental USD softness. Downside risks would meaningfully increase only upon a decisive violation of the $4,600 structural base," says R Ponmudi, CEO, Enrich Money.
While, MCX Gold continues to exhibit structural resilience despite global consolidation, supported by relative firmness in USD/INR. The ₹1,50,000 support band remains a strong demand absorption zone, attracting both physical buying and investment flows, reinforcing the integrity of the medium-term rising channel, he added.
Price behavior at lower levels indicates accumulation rather than distribution. A sustained move above Rs 1,60,000 would likely re-ignite bullish momentum toward Rs 1,65,000–Rs 1,70,000+, while meaningful downside risk remains limited unless COMEX gold breaches its structural support clusters decisively, says Ponmudi.
The rebound came after intermittent profit-taking earlier in the week, underscoring gold’s continued appeal as a hedge amid economic uncertainty.
The primary driver behind the renewed strength was the global interest rate outlook. Softer signals from the United States economy have reinforced expectations that the US Federal Reserve may eventually pivot towards easier monetary policy later in the year. Such expectations tend to weaken the dollar and lower bond yields, conditions that are traditionally supportive of gold, which does not offer interest but gains appeal when real returns on financial assets come under pressure.
Safe-haven demand has also played a role in underpinning prices. Persistent concerns around inflation trajectories, currency volatility and geopolitical risks continue to keep investor interest in gold intact. While risk appetite has fluctuated across global markets, gold has benefited from periodic shifts towards defensive assets, helping it recover quickly from short-term corrections.
On the domestic front, underlying physical demand has provided additional support. Jewellery purchases linked to the wedding season and seasonal buying have helped absorb price fluctuations, preventing sharper declines despite elevated levels. Retail demand, while sensitive to price spikes, remains structurally strong, lending stability to the market during periods of global uncertainty.
That said, the current price environment is not without challenges. The rapid back-and-forth movement seen over recent sessions has made short-term trading more unpredictable, prompting caution among both traders and consumers. Market participants note that psychological resistance levels remain in focus, and any abrupt shift in global data or policy signals could trigger fresh bouts of volatility.
While short-term movements are likely to stay choppy, the broader trend suggests that gold continues to be viewed as a reliable store of value in an environment shaped by shifting monetary expectations and economic risk, say analyst reports.