Gold Prices Surge Amid Dollar Weakness and Geopolitical Tensions

Gold prices continued their ascent on February 14, 2025, with spot gold trading at $2,929 per ounce in early Asian markets. Futures climbed 0.51% to $2,960.4 per ounce, reflecting robust demand driven by a weaker U.S. dollar and geopolitical uncertainties.

In India, 24-carat gold reached ₹87,060 per 10 grams, while 22-carat gold traded at ₹79,810 per 10 grams. The rally marks the seventh consecutive weekly gain, supported by a mix of global and local factors.

The U.S. dollar index fell to its lowest level since late January after softer-than-expected Producer Price Index (PPI) data and reduced concerns over reciprocal tariffs announced by the U.S. government.

Lower bond yields further incentivized investors to shift toward safe-haven assets like gold. Ajay Kedia of Kedia Commodities noted that “geopolitical uncertainties and inflation concerns are keeping gold in demand as a hedge against economic risks.”

Physical demand also played a significant role in the price surge. In India, the ongoing wedding season bolstered local buying, while global gold ETFs saw inflows rise to their highest levels since November 2024.

COMEX inventories surged as more investors opted for physical delivery over cash settlements, signaling heightened interest in tangible assets. However, regional markets displayed mixed trends.

Gold Market Update

In China, dealers offered discounts to attract buyers amid subdued jewelry sales despite rising global prices. Meanwhile, Saudi Arabia’s gold prices remained stable at SAR 352.96 per gram due to limited local fluctuations.

Technically, gold remains in a bullish trend within an ascending channel. Analysts identified key support levels at $2,900 and $2,870, with resistance at $2,945 and $3,000. A breakout above $3,000 could signal further gains but may also trigger profit-taking.

Volumes on COMEX remained robust as speculative buying pushed futures higher. Total known global gold ETF holdings rose to 93.932 million ounces on February 12, reflecting strong investor sentiment.

The Shanghai gold premium stood at -$0.57 as of February 13, highlighting regional pricing disparities. Looking ahead, analysts expect continued upward momentum driven by dollar weakness and geopolitical tensions.

However, they caution against potential corrections near resistance levels. Gold’s performance underscores its enduring appeal as a safe-haven asset amid economic uncertainty.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.