Highlights

  • Spot gold declined 1.50% to USD 5,150.38 after touching a multi-week high earlier in the session.
  • Gold May futures slipped 0.78% to USD 5,204.50, reflecting short-term adjustment.
  • A stronger U.S. dollar weighed on bullion, making it relatively expensive for global buyers.
  • Trade policy uncertainty resurfaced following fresh tariff remarks from U.S. President Donald Trump.
  • S.–Iran tensions continue to shape the broader macro landscape.
  • Fed Governor Christopher Waller indicated a data-dependent stance ahead of the March meeting.
  • Markets are currently pricing in three 25-basis-point rate cuts in 2026, according to CME Fed Watch data.

Gold Overview

Since mid-2024, gold has remained highly responsive to evolving macro signals while preserving its role as a portfolio hedge and diversification tool. The recent dip in futures prices reflects short-term recalibration driven by currency strength and policy expectations, rather than a fundamental structural change. Beyond investment demand, steady central bank accumulation and resilient industrial consumption, particularly in electronics and advanced manufacturing, continue to provide an underlying layer of support. Persistent geopolitical and trade-related uncertainties keep gold central to asset allocation decisions.

Dollar Strength Caps Upside Despite Geopolitical Backdrop

Gold retreated from its recent highs as renewed strength in the U.S. dollar weighed on its appeal in global markets. Currency firmness emerged as the dominant short-term influence, offsetting support from persistent U.S.–Iran tensions and ongoing trade policy uncertainty. Attention remains on the Federal Reserve’s interest rate outlook, which continues to shape precious metal dynamics. While geopolitical developments provide an underlying cushion, dollar movement remains the primary driver of near-term direction, keeping bullion sensitive to shifts in macroeconomic expectations.

Technical View: Is Gold Futures Consolidating Above Key Averages After Recent High?

From a technical perspective, Gold May futures are trading at USD 5,204.50, holding above the 21-day Simple Moving Average at USD 5,047.64 and the 50-day Simple Moving Average at USD 4,766.88, which continue to underpin the broader upward structure. The recent pullback from higher levels reflects short-term consolidation rather than a structural breakdown. The 14-day RSI stands at 59.63, indicating moderated momentum after cooling from elevated readings. Immediate support is seen near USD 4,900.00 and USD 4,700.00, while resistance is placed around USD 5,500.10 and USD 5,800.00 on renewed strength.

Bottom Line: Is Gold Consolidation Within a Broader Structure?

Gold appears to be stabilising after its advance toward USD 5,200.00 levels, with currency strength and policy expectations shaping near-term movement. However, geopolitical and trade uncertainties continue to frame the broader outlook.