Gold price today slips 0.03% to Rs 1.60 lakh on MCX; what’s weighing on prices?

• Gold prices dip as investors book profits after recent rally.
• Safe-haven demand continues due to US-Iran tensions and tariff risks.
• Analysts see gold dips as consolidation, not a trend reversal.

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Gold prices are trading marginally lower on February 26, as investors rush to book profits following a sharp rally.

The domestic futures gold on MCX opened the session at Rs 1,60,661 per 10 grams of 24-carat purity, down 0.03 percent from the previous close. Silver also retreated, falling 1.19 percent at Rs 2.65,121 per kilogram.

On Comex, spot gold eased from the previous session’s high of $5,230 per ounce to $5,204 per ounce in early trade today, marking a 0.41 percent decline over the past 24 hours.

The Indian Bullion Jewellers Association (IBJA) fixed the standard gold price at Rs 1,59,008 per 10 grams in the evening session.

Persistent tariff-related uncertainties and lingering US-Iran tensions are sustaining safe-haven demand, keeping gold prices elevated amid profit-taking. Optimism over possible US–Iran talks today has slightly cooled risk premium, keeping prices capped at higher levels.  Volatility is expected to stay elevated given ongoing geopolitical developments, as any escalation or breakdown in talks could quickly revive safe-haven buying.

Meanwhile, the rupee traded at 90.95 against the US dollar in early trade on Thursday as market participants remained cautious amid fresh uncertainty around the US trade framework. As per analysts, the rupee remains range-bound, with support near 91.25 and resistance around 90.50.

City-wise gold prices in India today

Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Why is the gold price down? Should you invest?

According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the dip in gold this week reflects the market trying to balance macro headwinds and safe-haven demand. A stronger USD and near-term profit-taking can cap short-term upside.

However, structural drivers remain supportive. Central bank accumulation, geopolitical tensions, and sticky global inflation expectations continue to limit downside. If US yields stabilise rather than surge, gold can regain momentum and comfortably return above $5,200, particularly if other events create risk-off sentiment. The most recent dip looks more like consolidation than a trend reversal.

A softer rupee increases domestic gold prices even when international prices dip. Silver, being more industrial and volatile, reacts sharply to global growth worries, making retail participants uncomfortable during periods of uncertainty.

"Investors are therefore rotating toward gold for stability, wealth preservation, and liquidity. Seasonal demand and steady ETF inflows also reinforce this narrative. Overall, USD strength may slow the pace of gains, but India’s currency dynamics and persistent global risks are likely to keep gold supported, with dips attracting buyers rather than triggering a structural shift in sentiment," said Maxwell.