INSUBCONTINENT EXCLUSIVE:
Gold prices stabilized on Wednesday, February 12, 2025, following a volatile session that saw the metal retreat from its record high of
$2,942.76 per troy ounce reached earlier this week.The April gold futures contract on COMEX closed at $2,928.70, down 0.13%, while spot gold
hovered near $2,884.51 during the day
The market balanced inflation concerns, geopolitical tensions, and profit-taking activities.The release of U.S
Consumer Price Index (CPI) data for January revealed a 2.9% year-over-year increase, slightly above expectations
This reinforced speculation that the Federal Reserve might maintain a cautious stance on interest rate cuts.Federal Reserve Chair Jerome
Powell emphasized in his congressional testimony that the central bank would not rush to ease monetary policy further, citing persistent
inflation risks.These developments temporarily strengthened the U.S
dollar and Treasury yields, pressuring gold prices
(Photo Internet reproduction)U.S
Simultaneously, escalating tensions in Gaza added to the risk-off sentiment in financial markets.Global Gold Demand and Market
OutlookGlobally, gold demand showed resilience
Central banks continued their buying spree to diversify reserves away from the U.S
dollar, with China leading purchases for the third consecutive month.European gold ETFs recorded inflows of 39 tonnes in January 2025,
reflecting investor appetite for safe assets amid volatile equity markets
Technically, gold remains in a bullish trend despite signs of overbought conditions.Analysts identified key support levels at $2,870 and
$2,830 and resistance at $2,942 and $3,000
The Relative Strength Index (RSI) stood at 72, suggesting potential for short-term corrections before another upward leg.Market participants
also noted profit-taking by short-term traders after recent highs
However, analysts like Neil Meader of Metals Focus highlighted that long-term fundamentals remain strong due to geopolitical uncertainties
and central bank demand.As gold holds near historic levels, investors are closely watching upcoming U.S
While short-term fluctuations persist, the broader outlook for gold remains optimistic amid global uncertainties and inflation fears.
