Gold prices declined, closing 1.13% lower at Rs 158,466, as investors assessed ongoing geopolitical tensions in the Middle East in relation to indications of decelerating economic growth in the United States. Despite the ongoing concerns regarding inflation fueled by elevated crude oil prices, revised data indicates that U.S. GDP growth for Q4 2025 has decelerated significantly to an annualized 0.7%, prompting renewed scrutiny of the economy’s robustness.

Consequently, markets currently perceive diminished probabilities of imminent Federal Reserve rate reductions, as policymakers weigh the inflationary threats posed by geopolitical tensions against indications of economic deceleration. Notwithstanding the decrease in prices, the prevailing trends in global demand continue to exhibit support. China’s central bank has continued its gold purchasing trend for the 16th month in a row, raising its reserves to 74.22 million troy ounces by the end of February. The value of China’s gold reserves increased to $387.59 billion, indicative of consistent acquisitions and elevated global prices.

Import data indicated a notable increase in physical demand, as evidenced by China’s net gold imports through Hong Kong, which surged by 68.7% in January, reaching 20.58 tonnes. Conversely, demand in India has shown signs of weakness attributed to elevated prices and import duties, resulting in local market discounts reaching up to $83 per ounce, the most substantial spread since 2016.

From a technical perspective, the market is experiencing new selling pressure, as open interest increased by 0.26% to 7,844 lots while prices fell by Rs 1,805. Immediate support is identified around Rs 157,115, and a breach of this threshold may lead to a decline toward Rs 155,760. On the upside, resistance appears to be positioned around Rs 160,250, and a sustained movement beyond this threshold could result in a test of Rs 162,030.