Gold fell 0.82% to ₹96,472 on concerns over US trade tariffs and expectations of interest rate hikes. The president’s threat to impose higher tariffs on imports from key partners like Japan and South Korea also spooked global markets. Better-than-expected US employment data reduced the chances of an interest rate cut soon, further reducing the appeal of non-interest-bearing gold.
Meanwhile, central banks have added a total of 20 tonnes to their gold reserves in May. China’s gold reserves rose to 73.90 million ounces. Kazakhstan bought the most gold, followed by Turkey and Poland. Singapore alone sold 5 tonnes. According to the 2025 Central Bank Survey, 43% of central banks plan to increase their gold reserves in the future. In Asia, higher gold prices have led to a decline in gold imports in India, with the discount rate falling from $18 to $14. But the premium has risen from $4.2 to $33, reflecting strong local demand in China.
