Following an all-time high, traders booked profits, leading to a 0.24% decline in gold prices to ₹85,910 per 10 kg. The US President threatened a 25% tariff on vehicle imports and additional duties on pharmaceuticals. The gold price forecast for the year-end 2025 was revised upwards to $3,100 per ounce, with macroeconomic factors also weighing on gold prices.
According to the London Bullion Market Association (LBMA), gold held in London vaults fell 1.7% to 8,535 metric tonnes at the end of January, indicating supply concerns. India’s gold consumption, which was at a nine-year high of 802.8 tonnes, is expected to decline in 2025 as demand for jewellery has fallen as a result of record prices. Indian sellers have been forced to discount up to $26 per ounce. However, demand for investments in ETFs, digital gold, and gold bars is expected to continue to be high.
