Gold prices fell 0.05% to ₹85,481 as US inflation strengthened expectations that the Federal Reserve will reach a record low. The headline inflation measure was 3.3%, higher than forecast, and January inflation unexpectedly rose to 3%.
Despite these challenges, gold prices have risen more than 10% since the start of the year, thanks to dovish monetary policies from other major central banks including the ECB, BoE, RBI and BoC. India’s gold consumption is expected to fall by 700-800 metric tonnes in 2025, from 802.8 tonnes the previous year, according to the World Gold Council, which has estimated an 11% decline in global jewellery demand in 2024.
