Gold futures drop nearly 2% to ₹1.52 lakh/10g on strong dollar

Gold prices dropped more than 1% to ₹1.52 lakh per 10 grams in the futures trade on Tuesday (February 17, 2026), due to easing safe-haven demand amid improving geopolitical sentiment and a strong U.S. dollar.

On the Multi Commodity Exchange, the yellow metal for April delivery depreciated by ₹2,228, or 1.44%, to ₹1,52,532 per 10 grams in a business turnover of 7,553 lots.

Gold traded on a softer note on Tuesday (February 17, 2026), with prices consolidating after recent volatility as investors booked profits and reacted to a firmer U.S. dollar and shifting interest-rate expectations from the Federal Reserve,” Gaurav Garg, research analyst at Lemonn Markets Desk, said.

He noted that safe-haven demand amid weakness in global equities and continued central-bank buying helped limit the downside.

In 2026, both metals are undergoing a volatile corrective phase after last year’s strong rally, though the broader multi-year bullish trend remains intact. MCX gold is consolidating around ₹1.55-1.58 lakh per 10 grams, below earlier peaks, Mr. Garg said.

“The current weakness is largely seen as consolidation rather than a trend reversal. Investors may consider holding and rebalancing on dips, while fresh allocations should be staggered amid choppy market conditions,” he added.

In the global market, Comex gold futures for April contract declined $119.6, or 2.37%, to $4,926.7 per ounce.

“Gold dropped below $4,970 per ounce amid thin trading volumes as several Asian markets including China, remained closed for the Lunar New Year following a U.S. market holiday on Monday (February 16, 2026),” Jigar Trivedi, senior research analyst at IndusInd Securities, said.

Renisha Chainani, Head – Research at Augmont, said safe-haven demand for gold metal eased as geopolitical tensions moderated and the U.S. dollar strengthened.

She noted that comments from President Donald Trump indicating indirect U.S. involvement in upcoming nuclear discussions with Iran in Geneva, raised hopes of diplomatic progress. At the same time, fresh Ukraine-Russia talks reduced immediate geopolitical tensions, improving risk appetite.

“As risk sentiment improved, some investors reduced defensive positions in precious metals,” Ms. Chainani said, adding that market attention now shifts to the Federal Reserve’s January meeting minutes for cues on the future interest rate outlook.