Investors were waiting for key US inflation data due to book profits, which will provide more clues about the Federal Reserve’s interest rate policy. Market sentiment suggests it will cut rates again in June after cutting rates three times in 2024. China’s reserves rose to 73.61 million fine troy ounces in February from 73.45 million in January, marking the fourth consecutive monthly increase, as the central bank continued to buy gold.
High prices have made jewelers reluctant to buy at the end of the fiscal year, dampening demand for gold in India. Indian traders last week cut the price of an ounce by $10 to $21 from $27 a troy ounce, a nine-year high, this year. India is expected to consume less gold in 2025 than it did this year, when it reached a nine-year high of 802.8 metric tons. Because despite the increasing demand for investments, record prices may make jewelry less attractive.
