Gold Run
Spot gold prices down on strong US data; geopolitical tensions to limit fall
This story was originally published at 14:50 IST on 20 February 2026
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MUMBAI – Spot gold prices fell Friday as stronger than expected US economic data lowered the expectations of a rate cut by the US Federal Reserve. However, the fall in prices could be limited due to tensions between the US and Iran.
In Mumbai, the spot price of gold of 99.9% purity was INR 154,438 per 10 grams, down from INR 154,735 per 10 grams Thursday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. Dealers are offering a discount of INR 900 per 10 grams on spot gold prices, Nitin Kedia, national general secretary of All India Jewellers & Goldsmith Federation, said.
"...better than expected US economic numbers from US raised the doubts over immediate rate cut from the US Federal reserve," ICICI Direct said in a report. On Thursday, data released by the US Labor Department showed initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 206,0000 in the week ended Feb. 14. Moreover, minutes of the Federal Open Market Committee's meeting held in January indicated an uncertain rate cut path.
However, gold prices are unlikely to decline further due to escalating geopolitical tensions, which are keeping markets on edge. On Thursday, US President Donald Trump said the world will find out "over the next, probably, 10 days" whether the US will reach a deal with Iran or take military action, BBC reported. In the first meeting of his Board of Peace in Washington DC, Trump addressed talks with Iran over its nuclear programme. "We have to make a meaningful deal otherwise bad things happen." In recent days, the US has increased its military presence in West Asia, even as progress was reported in talks between US and Iran negotiators in Switzerland, the report said. End
Reported by Reshma Ravi
Edited by Ashish Shirke
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