Gold price today surged 2.65% on Comex, is now the time to invest?

• Gold price rises amid geopolitical tensions and a stronger dollar
• Spot gold trades at $5,130/oz, up 2.65 percent in 24 hours
• Experts suggest buy-on-dips, sell-on-rallies strategy for gold

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The gold price is on an upward trajectory, driven by geopolitical tensions and a stronger dollar. The spot price of metal was trading higher on Comex at $5,130 per ounce on February 21 (4:17 am GMT), up 2.65 percent in the last 24 hours.

The domestic futures price of gold on MCX closed the Friday session higher at Rs 1,56,993 per 10 grams of 24-carat purity, representing 0.07 percent gain from the previous close.

The Indian Bullion Jewellers Association (IBJA) pegged the standard gold price at Rs 1,55,066 per 10 grams of 999 purity, up 0.33 percent from the previous close. These rates form the benchmark for the RBI’s Sovereign Gold Bond (SGB) valuations, calculated using the previous week’s average closing price.

Meanwhile, the rupee weakened to 90.73 against the US dollar on Friday. The rupee weakened amid the standoff, keeping risk sentiment elevated. The AI Summit in India promises India-focused AI and innovation, which can keep fund inflows into India, with the Euro joining hands with India.

Gold futures are edging higher as the US–Iran standoff keeps risk sentiment elevated. However, with President Trump reportedly giving Iran a 10-day window for a deal, price action could swing either way over the weekend sharply. Any diplomatic breakthrough may trigger profit booking, while escalation could push bullion into another spike. Volatility remains the key theme.

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 are gold prices rising? Should you invest?

The Augmont Bullion report, published on February 20, noted that gold prices moved higher as investor prefered safe-haven assets. The US dollar strengthened, emerging as the dominant factor influencing price action.

While January’s softer inflation data supported expectations of multiple rate cuts this year, strong nonfarm payroll numbers, steady private hiring, and continued economic growth have reduced the likelihood of an aggressive or immediate easing cycle. This shift in expectations has supported the dollar and created headwinds for gold and silver.

Geopolitical developments — including renewed US–Iran nuclear talks and ongoing Russia–Ukraine negotiations — continue to underpin gold’s safe-haven appeal. However, in the current phase, currency movements have had a stronger impact than geopolitical factors.

Markets are now awaiting the minutes of the Federal Reserve’s January meeting for clearer signals on the future interest rate path, which will likely guide the next move in precious metals.

The report predicts that in the short term, gold prices are likely to consolidate within the $4,650–$5,100 range (Rs 1,47,000–R 1,60,000). "A buy-on-dips and sell-on-rallies approach is advisable."