Gold price today rises nearly 1% ahead of key US data; should you invest now?

• Gold prices edged higher amid dip-buying and a softer dollar.
• Gold demand in 2025 surpassed 5000 tonnes for the first time.
• Central banks and ETF inflows continue to support gold prices.

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The gold price on February 11 edged higher as market participants stepped in to dip-buy amid a softer dollar.

The futures price of metal opened the Wednesday session higher at Rs 1,56,162 per 10 grams and continued to trade flat, hovering at Rs 1,56,140 as of 9:38 am IST, representing a 0.79 gain from the previous close.

The metal's spot price was trading at $5,078 an ounce on Comex at 04:09 am GMT, up 0.94 percent from the previous close.

Meanwhile, the Indian Bullion and Jewellers Association fixed the standard price of 10 grams of gold at Rs 1,56,255 for 999-carat purity on its February 10 evening session, which is a 0.89 percent gain from Rs 1,54,876 in the last 24 hours.

The rupee strengthened marginally against the dollar, with USD-INR at 90.48, lower by 0.08 percent in a day and 0.11 percent over the week.

“Participants are awaiting key US retail sales data, followed by unemployment and non-farm payroll numbers later in the week. These releases are likely to inject volatility, as they will shape expectations around the Fed’s policy stance and influence near-term price direction in bullion," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Gold prices rebound: Is now the right time to invest?

According to Geojit report, published on February 10, gold prices steadied above $5,000 a troy ounce in early February, after an episode of extreme volatility that erased nearly half of January’s gains amid easing geopolitical tensions and a shift in the U.S. Federal Reserve’s monetary policy outlook.

Here's the latest update on factors reshaping gold prices, according to the Geojit report, as follows:

• Gold surrendered half of its January gains during the month-end liquidation, after having earlier reached a record high of USD 5594 per troy ounce on the London spot platform.

• Gold prices in both LBMA and COMEX hovered above USD 5000 per troy ounce, with a gain of over 10% over the last monthly period.

• In India’s MCX platform, gold prices surged 8% over the last monthly period.

• Total gold demand in 2025, including OTC activity, surpassed 5000 tonnes for the first time. - World Gold Council.

• China’s central bank, PBOC, extended its gold purchases for a 15th consecutive month in January. The country’s gold reserves rose to 74.19 million fine troy ounces at the end of January, compared with 74.15 million a month earlier.

• Global equity benchmarks were mostly traded in positive territory last week, except China’s SSE index.

• The U.S. Federal Reserve kept interest rates unchanged at the 3.50%–3.75% range following its January policy meeting.

• The U.S. Dollar Index, a gauge of the greenback against six major rivals, traded near 97 last week.

• The Indian Rupee slumped to an all-time low of 92 against the U.S. dollar in late January, a move that subsequently accelerated gold prices in the domestic market.

• The currency peers, the Euro and the Japanese Yen, slipped while the Chinese Yuan gained against the USD last week.

• Gold-backed ETF inflows with SPDR remained robust in January, marking eight consecutive months.

Outlook: Will gold continue the momentum?

As per the Geojit report, Gold prices are expected to remain supported by sustained central bank purchasing and strong ETF inflows, even as geopolitical tensions ease and trade-related uncertainties diminish.

Speculation that Kevin Warsh could succeed Jerome Powell as the next Federal Reserve Chair introduced additional volatility, as investors reassessed the potential implications of a shift in US monetary policy.

"Nevertheless, once this period of turbulence and liquidation subsides, the market is likely to refocus on the underlying structural drivers that continue to underpin bullion demand," the report stated.