New Delhi, February 17 Gold prices fell by more than 1% to Rs 1.52 lakh per 10 grams in the futures trade on Tuesday, due to easing demand for safe-haven assets amid improving geopolitical sentiment and a strong US dollar.
On the Multi Commodity Exchange, the yellow metal for April delivery depreciated by Rs 2,228, or 1.44%, to Rs 1,52,532 per 10 grams in a trading turnover of 7,553 lots.
Gold traded on a softer note on Tuesday, with prices consolidating after recent volatility as investors booked profits and reacted to a stronger US dollar and shifting expectations regarding interest rates from the Federal Reserve," Gaurav Garg, a Research Analyst at Lemonn Markets Desk, said.
He noted that the demand for safe-haven assets, coupled with weakness in global equities and continued central bank buying, helped to limit the downside.
In 2026, both gold and silver are undergoing a volatile correction after last year's strong rally, although the broader multi-year bullish trend remains intact. MCX gold is consolidating around Rs 1.55-1.58 lakh per 10 grams, below earlier peaks, Garg said.
"The current weakness is largely seen as a consolidation rather than a reversal of the trend. Investors may consider holding and rebalancing during dips, while fresh allocations should be staggered amid choppy market conditions," he added.
In the global market, Comex gold futures for the April contract declined by USD 119.6, or 2.37%, to USD 4,926.7 per ounce.
"Gold fell below USD 4,970 per ounce amid thin trading volumes as several Asian markets, including China, remained closed for the Lunar New Year following a US market holiday on Monday," Jigar Trivedi, a Senior Research Analyst at IndusInd Securities, said.
Renisha Chainani, Head - Research at Augmont, said that demand for gold as a safe-haven asset eased as geopolitical tensions moderated and the US dollar strengthened.
She noted that comments from President Donald Trump indicating indirect US involvement in upcoming nuclear discussions with Iran in Geneva raised hopes of diplomatic progress. At the same time, fresh talks between Ukraine and Russia reduced immediate geopolitical tensions, improving risk appetite.
"As risk sentiment improved, some investors reduced their positions in precious metals," Chainani said, adding that market attention is now focused on the Federal Reserve's January meeting minutes for cues on future interest rate outlook.
