Gold prices rise as dollar weakens: Key things investors should know
Gold prices surged on Monday (February 17) as the US dollar weakened. Investors are closely monitoring President Donald Trump’s proposed tariffs, which could heighten global trade tensions.
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Spot gold increased by 0.6% to $2,899.73 per ounce as of 0313 GMT.
This follows a record high of $2,942.70 on February 11.
US gold futures also rose by 0.4% to $2,912.50.
In India, 24-carat gold is priced at ₹8,662 per gram, while 22-carat gold stands at ₹7,940 per gram, according to Goodreturns data.
The dollar index remains near a two-month low due to recent weak US economic data. A weaker dollar makes gold more affordable for holders of other currencies.
Kelvin Wong, senior market analyst at OANDA, notes that uncertainty over Trump’s trade tariff policies supports gold prices.
President Trump has indicated that tariffs on automobiles could be implemented as early as April 2. Additionally, US officials are set to begin peace talks with Russian and Ukrainian negotiators in Saudi Arabia.
Tim Waterer, chief market analyst at KCM Trade, suggests that successful peace talks could reduce gold’s appeal as a safe-haven asset. However, ongoing tariff and inflation concerns may continue to bolster gold prices.
Rahul Kalantri, VP Commodities, Mehta Equities, emphasise its role as a hedge against inflation and market volatility. The current uptrend reflects investor confidence in gold’s stability during turbulent times.
Gold has been in a bullish trend since November 2022, reaching record highs in early 2025. Analysts advise caution, noting potential pullbacks. Key support levels are identified at $2,870 per ounce and $2,855 per ounce, with resistance at $2,924 per ounce and $2,942 per ounce.
Gold continues to serve as a traditional hedge against rising prices and geopolitical uncertainties. The current market reflects this sentiment, with prices nearing the $3,000 per ounce mark.