Gold prices rose 1.22% to ₹97,251 on concerns over US trade deals and government spending. The US dollar weakened as investors worried about the government’s big spending and tax cut plans, which could lead to more borrowing. This made investors move their money into safe-haven assets like gold.
Many expect the Federal Reserve to cut interest rates later this year. In May, China’s gold imports from Hong Kong fell slightly by 1.5%. However, gold prices in China and Singapore saw small increases, indicating stable local demand. In India, buyers are waiting for gold prices to fall further, and sellers are offering discounts of up to $18 per ounce.
Globally, gold demand increased by 1% in the first quarter of 2025 compared to the previous year, mainly as more people invested in gold ETFs and bars. But gold jewelry sales fell sharply – down 21% – reaching levels last seen during COVID-19.
