Gold price on Feb 23: Gold surges to three-week high above $5,160 as US tariff uncertainty spurs safe-haven demand

Gold prices extended gains in early Monday trade, climbing to multi-week highs across global and domestic markets as investors sought refuge amid renewed uncertainty surrounding US trade policy and rising geopolitical risks. The precious metal strengthened sharply on both Comex and the Multi Commodity Exchange (MCX), underpinned by a softer US dollar and volatility in global equities.

On the MCX, April gold futures were trading at ₹1,59,886 per 10 grams, up ₹3,010 or 1.92 per cent at 09:10 am. Internationally, spot gold rose to $5,163.60 per ounce, its highest level in more than three weeks, while US gold futures for April delivery advanced around 2 per cent to $5,184.90 per ounce. Prices have now firmly re-established themselves above the psychologically significant $5,000 per ounce mark.

The rally follows a US Supreme Court ruling that struck down a broad set of President Donald Trump’s emergency tariffs. However, rather than easing uncertainty, the decision was followed by a fresh announcement from the administration of a new 10 per cent tariff on imports from the rest of the world, with indications that the rate could be raised to 15 per cent. The evolving tariff stance has clouded the global trade outlook, prompting investors to rotate back into bullion.

Analysts say the shifting policy narrative has increased hedging demand. “The tariff landscape is now more uncertain than before,” noted Rodrigo Catril, senior FX strategist at NAB, adding that repeated changes in trade policy could weigh on investor confidence and global growth expectations.

Early trade

The US dollar weakened against major currencies in early Asian trade, reflecting broader unease over policy direction. A softer dollar typically enhances the appeal of gold for overseas buyers, as the metal is priced in US currency. The combination of dollar weakness and policy volatility has created a supportive macro backdrop for bullion.

At the same time, investors are digesting mixed US economic signals. While recent data showed economic growth missing expectations in the December quarter, core inflation surprised on the upside. Market pricing now indicates that the probability of a June rate cut by the Federal Reserve has moderated to around 52 per cent, compared with more than 60 per cent a week earlier. Even so, gold continues to benefit from its role as a portfolio diversifier amid policy ambiguity.

Analysts speak

From a technical standpoint, market participants see the broader uptrend as intact despite recent volatility. Ponmudi R, CEO of Enrich Money, said Comex gold is trading within the $5,100–$5,200 zone after correcting from record highs above $5,500–$5,600. He noted that prices are holding above key moving averages and that strong buying interest has emerged in the $4,650–$4,800 support band. A decisive breakout above $5,200–$5,300 could pave the way for a retest of all-time highs.

On the domestic front, MCX gold futures are consolidating in the ₹1,55,000–₹1,62,000 range after retreating from lifetime highs near ₹1,80,000–₹1,81,000. According to market analysts, sustained strength above ₹1,60,800 may revive upward momentum toward ₹1,65,000–₹1,75,000 in the medium term, provided global cues remain supportive.

Gold prices remained firm across major Indian cities on February 23, reflecting strong global cues and steady domestic demand. Chennai recorded the highest 24K rate at ₹1,60,150 per 10 grams, while most other metros, including Mumbai, Kolkata, Bengaluru, Hyderabad, Kerala and Pune, quoted 24K gold at ₹1,59,280. In Delhi, the 24K price stood slightly higher at ₹1,59,430. Vadodara and Ahmedabad reported ₹1,59,330. For 22K gold, rates ranged between ₹1,46,000 and ₹1,46,800, while 18K prices were largely around ₹1,19,460–₹1,25,600. The narrow price variation indicates stable supply conditions and alignment with elevated international bullion trends.

(With agency inputs)