Rising trade concerns between the US and China and poor US employment figures helped gold prices rise 0.53% to settle at 84,888. By the end of January, China’s central bank had 73.45 million fine troy ounces of gold, increasing its reserves for the third consecutive month. Gold holdings in London vaults fell 1.7% to 8,535 metric tons as exports to the US rose as a result of strong futures premiums.
As a result, shipping from Asian hubs London and Switzerland increased. Higher gold prices in India have dampened demand, as evidenced by local dealers discounting $31 per ounce, down from $35 a week ago. Gold traded at a discount of $7–$10 per ounce, according to the World Gold Council (WGC), with demand for gold jewellery falling 11% in 2024 and further declines expected as a result of higher prices. The country’s gold demand hit a nine-year high of 802.8 tonnes. India is expected to consume less gold in 2025 than this year, but investment demand remains high as interest in gold bars, digital gold and exchange-traded funds (ETFs) continues to grow.
