Gold prices fell 2.38% to ₹97,023 as investors questioned how long the ceasefire between Iran and Israel would last. Fresh reports of missile strikes and military action have re-ignited concerns, leading to uncertainty over the ceasefire.
Another reason for the decline was that the US Federal Reserve chairman said in a speech that while inflation is falling and the job market is weakening, an interest rate cut is not urgent now.
In June 2025, the US Federal Reserve (FOMC) kept interest rates steady at 4.25%–4.50% for the fourth consecutive time. It cut its US growth forecast for 2025 to 1.4% from 1.7% in March.
On the demand side, gold buying in India has started to pick up as local prices have fallen. This reduced the discount offered by dealers from $63/ounce to $27/ounce. In China, demand for gold remained weak, but in India, higher buying is expected from mid-August due to the upcoming festivals.
