Gold prices in Bangalore have witnessed a significant drop on February 28, marking their third consecutive decline. This comes after a period of record-high prices, bringing relief to retail buyers. However, the fall has been steep, with bullion prices declining by over 1% after consecutive drops.
On February 28, the price of 22-carat gold in Bangalore dropped sharply by Rs. 500 per 10 grams, now priced at Rs. 79,600. Similarly, 24-carat gold saw a substantial decrease of Rs. 540, bringing its price to Rs. 86,840 per 10 grams. The 18-carat gold price also decreased by Rs. 410, now standing at Rs. 65,130 per 10 grams.
100g of 24-Carat Gold Now Costs Rs. 8,68,400
The cost of 100 grams of 24-carat gold in Bangalore has now dropped to Rs. 8,68,400, following a decline of Rs. 5,400. Meanwhile, the price of 100 grams of 22-carat gold has decreased by Rs. 5,000, now priced at Rs. 7,96,000.
Market Trends: Retail Buyers Benefit from Decline
Despite the initial surge in gold prices at the beginning of the week, which saw gold hitting record highs, this recent drop is good news for retail buyers. However, investors holding gold in the form of bullion may now consider profit-taking, given the sharp fall in prices.
International Gold Market Faces Pressure
Globally, gold prices are also experiencing a downward trend. Spot gold has fallen nearly 2% this week, breaking its previous upward momentum. The strengthening U.S. dollar and rising Treasury yields have decreased gold’s appeal as a safe-haven asset. Additionally, trade tensions have increased, with U.S. President Donald Trump announcing new tariffs, set to take effect from March 4.
According to ICICI Direct’s Commodity Research report, “Gold is expected to face resistance near $2925, with a potential decline toward $2860 due to a strong dollar and higher treasury yields. Rising inflation expectations may reduce the chances of two rate cuts this year. However, tariff uncertainties and increased ETF flows could provide some support for bullion. For today, the focus will be on the U.S. PCE price index, the Fed’s preferred inflation measure, and comments from Federal Reserve members that could add volatility to prices.”
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