Gold in India Falls ~₹2,050 as Dollar Strength, Thin Liquidity Hit Prices
Gold prices in India fell for a second consecutive session on 17 February 2026, with 24K gold at ₹15,420/gram (down ₹224), 22K at ₹14,135/gram (down ₹205) and 18K at ₹11,565/gram (down ₹168). On a 10-gram basis, 24K gold has slipped roughly ₹2,050, and domestic 24K recorded a cumulative drop exceeding ₹28,400 per 100 grams over two sessions. International bullion dipped below $4,950/oz amid thin trading (Chinese Lunar New Year closures and US Presidents’ Day) while the US Dollar Index and US Treasury yields rose. Stronger dollar and higher yields reduced safe-haven appeal and increased the opportunity cost of holding non-yielding gold, prompting profit-taking after gold’s recent rally above $5,000/oz. Eased geopolitical tensions (reports of US–Iran progress and renewed Russia–Ukraine talks) and improved risk appetite also shifted flows toward equities. Domestic futures on MCX corrected sharply; silver fell about ₹35,000/kg over five days. Traders are watching the ₹150,000–₹155,000 per 10-gram band as key support for 24K gold. Near-term direction hinges on forthcoming US PCE inflation data and Fed minutes, which could affect rate expectations and bullion flows. Primary keywords: gold price India, dollar strength, US Treasury yields. Secondary/semantic keywords: bullion, MCX, profit booking, safe-haven demand, PCE data.
Bearish
The immediate impact on tradable markets is bearish for gold and other precious metals. Key drivers cited—stronger US dollar, rising US Treasury yields, thin liquidity around holidays, and profit-taking after a sharp rally—are classic downward pressures on non-yielding assets. Historically, similar setups (dollar strength + higher yields + profit booking) have led to short-term corrections in gold prices as traders reduce long positions and rotate into risk assets. The easing of geopolitical risks further reduces safe-haven demand, reinforcing the bearish signal. Short-term traders should expect heightened volatility and potential further declines if 24K gold breaks the ₹150,000/10g support band; failure to hold that zone could accelerate selling. Medium-term direction depends on incoming US CPI/PCE prints and Fed commentary: hawkish surprises would extend the bearish trend, while softer inflation or dovish Fed guidance could reverse losses and restore bullish momentum. For crypto traders, a weaker gold safe-haven may marginally favor risk assets (including major cryptos) in the short term if risk-on flows intensify, but large macro shifts in rates or dollar strength could dampen crypto gains as well.