Gold Rate Today 25th February 2026: Gold is up by 0.47%; check prices in major cities

Gold prices in India have hit a new historic peak this Wednesday, crossing the ₹1.6 lakh per 10 grams mark for the first time. On February 25, 2026, 24-karat gold rose to ₹1,60,830, driven by a volatile mix of global trade policy confusion and simmering geopolitical tensions in West Asia.

The rally reflects a global flight to safety as investors navigate the “Trump Tariff” era. With the US officially collecting 10% duties on various imports and threatening a jump to 15%, the “Yellow Metal” has emerged as the preferred hedge against a potential global trade slowdown.

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The Tariff Tug-of-War: Why Gold is Rising

The primary driver behind today’s 0.47% uptick is the lack of clarity regarding US trade agreements.

• Collection Begins: The US has started enforcing temporary 10% tariffs.

• The Warning: President Trump has warned of even higher duties for nations attempting to renegotiate existing trade deals.

• Currency Impact: This policy confusion typically softens the US Dollar in the long term, making gold more attractive to international buyers.

City-Wise Breakdown: Ahmedabad and Chennai Lead

Domestic prices continue to show regional variations due to local taxes and demand-supply dynamics. Chennai remains the most expensive metro, while Ahmedabad and Surat have seen the highest daily jumps of ₹770.

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China Factor and the US Federal Reserve

Beyond the US, the resumption of full-scale trading in China following recent holidays has injected fresh liquidity into the bullion market. Simultaneously, the US Federal Reserve is sending mixed signals. While the market expects three rate cuts in 2026, Fed official Susan Collins has hinted that rates might stay steady to combat persistent inflation—a scenario that typically creates short-term volatility for non-yielding assets like gold.

Reality Check

We are officially in “uncharted territory” with gold above ₹1.6 lakh. Still, retail demand in India traditionally slows down at these price points. Therefore, while the investment demand for ETFs and digital gold is high, the physical jewelry market may see a significant cooling period. In fact, if the US-Iran talks on Thursday result in a surprise breakthrough, we could see a massive “profit-booking” sell-off that brings prices back toward ₹1.55 lakh.

The Loopholes

The US is collecting “temporary” 10% tariffs. In fact, many analysts believe these “temporary” measures are a negotiation loophole to force trade concessions without a formal permanent hike. Therefore, the “uncertainty” fueling gold might be a curated diplomatic tool. Still, the “China Arbitrage” loophole—where Chinese demand spikes after a lull—is providing the current floor for prices regardless of what happens in Washington.

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What This Means for You

If you are looking to buy jewelry for the upcoming wedding season, realize that you are paying a “Geopolitical Premium” of nearly 5% compared to just a few weeks ago. First, consider Digital Gold or Gold ETFs if your goal is pure investment, as they eliminate the high making charges currently being levied by jewelers. Then, realize that Dubai remains roughly ₹7,800 cheaper per 10g; if you have a trip planned, the 5.12% difference is worth the wait.

Finally, understand that Thursday (Feb 26) is the pivot point. You should wait for the headlines from the Geneva talks before making any large-scale purchases. Before committing, check if your jeweler offers a “Price Lock” facility, as the current outlook remains bullish with a scope for further upside if trade tensions escalate.

What’s Next

All eyes are on the US-Iran resumption of talks tomorrow. Then, the market will monitor the US Core PCE inflation data to see if the Fed’s rate-cut timeline remains intact. Finally, look for silver to potentially catch up to gold’s rally, as the current gold-to-silver ratio remains wide.

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End…

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