Gold futures for April delivery experienced a decline of Rs 1,303 or 0.81%, reaching an intraday low of Rs 1,60,295 per 10 grams on the Multi-Commodity Exchange on Tuesday, February 24. At approximately 3:18 pm, the yellow metal contract was trading Rs 944 or 0.58% lower at Rs 1,60,654 per 10 grams in turnovers of 7,595 lots, lagging behind international gold prices as investors took profits in response to global uncertainties stemming from US tariffs.
On a global scale, COMEX gold for April expiry experienced a decline of up to 1.18%, reaching a session low of $5,164.10 per ounce. At the time of writing, it stood at 5,192.50 per ounce, marking a 0.63% decline. The Trump administration is aiming to reinvigorate its global tariff strategy following the Supreme Court’s recent decision to invalidate numerous levies established in the previous year. In the wake of the decision, President Donald Trump declared the imposition of a new 10% tariff, set to take effect on Tuesday. He has also indicated a potential increase to 15%. This development occurs as numerous nations reevaluate their trade stances following the ruling. The European Union has suspended the ratification process of its trade agreement, whereas India has postponed discussions with the United States.
On the geopolitical front, Iran and the US are scheduled to convene in Geneva for the forthcoming round of nuclear discussions on Thursday, February 26, in the context of rising tensions. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.15% higher at 97.85. Given that gold is priced in dollars on a global scale, an appreciation of the dollar typically results in higher costs for gold in other currencies, thereby diminishing its demand.